Whale shifts from short to long: Builds a new $17.6 million ZEC position, why is the position size decreasing?

On-chain whale “Strategy Counterparty” movements have once again attracted attention. According to data, this address, once the largest BTC short position on-chain, is undergoing a strategic shift: from aggressive bearishness to bullish positioning, with new positions added in ZEC.

Whale’s Shift Signal

Transition from Short to Long

Since establishing the position in December last year, this address was temporarily the largest BTC short on-chain. But starting last week, its strategy changed significantly, shifting from bearish to bullish. The latest move was opening a long position in ZEC an hour ago, with a position size of 42,498.49 ZEC, approximately $17.6 million at current prices.

Additionally, the address still holds long positions in mainstream coins such as BTC, ETH, SOL, XRP, further confirming its transition from short to long.

Details of Position Adjustment

Interestingly, although new ZEC positions were added, its total position size has actually decreased:

This indicates that the whale isn’t simply increasing positions but is adjusting its portfolio. Multiple adjustments over the past weekend suggest reconfiguration of holdings, possibly reflecting a reassessment of market structure.

Account Performance and Market Signals

Profitability

Despite the shrinking position size, the account performance remains strong:

• Total profit/loss in the past 1 day: $5.3 million
• Total profit/loss in the past 1 month: $14 million
• Total account value: approximately $35 million

This shows that even during position adjustments, the address remains profitable, indicating well-timed operations.

ZEC Market Performance

The whale’s decision to build a position in ZEC at this time is not coincidental. According to latest data, ZEC has performed well:

• Current price: $412.97
• 24-hour increase: 9.02%
• 7-day decline: 18.39% (currently rebounding)
• Market cap rank: 18th

After experiencing a 7-day decline, ZEC has recently rebounded strongly in the past 24 hours, which may be an opportune moment for whale positioning.

Market Implications

This strategic shift by the whale has several implications:

First, from the largest on-chain short to bullish positioning, it reflects a change in market sentiment. Large addresses’ strategy adjustments often precede market moves and serve as a market indicator.

Second, adding positions in assets like ZEC indicates that the whale sees value in these assets. As a privacy coin, ZEC ranks within the top 20 by market cap. Choosing it over smaller altcoins demonstrates confidence in its fundamentals.

Third, the reduction in position size is not necessarily a sell-off but an optimization. It suggests the whale is improving the quality of its holdings rather than simply reducing risk.

Summary

The “Strategy Counterparty” shift is an interesting case, showcasing the flexibility of large on-chain addresses. From bearish to bullish, from BTC concentration to multi-asset diversification, this $258 million whale is adjusting its market stance. The addition of ZEC as a new position is noteworthy. Future observations include whether this address will continue to increase its ZEC holdings and whether other whales will follow suit.