Compass Investments

– A recent analysis has revealed a growing trend among large cryptocurrency holders, commonly referred to as whales,

– they prefer to close long positions in most altcoins, opting for shorts.

This is in contrast to retail investors, who are said to be predominantly longing.

The Alphractal report provides a metric called “Whale Delta vs. Retail Delta” to reflect the difference in the positions of these two groups of investors.

According to the data, negative values of the metric signal that whales are more likely to get rid of longs and open shorts. Conversely, positive values indicate the opposite trend:

Whales are closing shorts and opening longs.

The report emphasizes that understanding the direction of these big players’ bets could be critical for other investors, and that the whales’ strategy of going against the tide is risky.