Whale reduces short positions and turns to long ZEC, what signals are hidden behind the $10.06 million unrealized profit

According to the latest news, a well-known on-chain swing trader known as “20 Million Swing Hunter” (address 0x880a) made a significant adjustment on January 13: reducing BTC and PUMP short positions and switching to a long position on ZEC. Currently, the account has an unrealized profit of $10.06 million. This strategic shift is noteworthy because this trader’s historical track record is well established.

Who is this whale, and what does his operation indicate?

Trader’s Profile

“20 Million Swing Hunter” is a typical high-frequency swing trader, characterized by:

• Multi-asset portfolio management, avoiding over-concentration in a single coin
• A high-leverage, short-dominant strategy aimed at earning excess returns through shorting
• An average holding period of about 20 hours, pursuing short-term volatility gains
• A profit of approximately $8.7 million over the past week, with total cycle profits approaching $100 million

This is not a novice or an emotional trader but a professional with a clear trading system and stable profitability.

What does the strategy adjustment mean?

From the timeline of the news, this trader previously increased short positions on altcoins like BNB, DOGE, and PUMP, with unrealized gains reaching $7.43 million. Now, suddenly reducing these shorts and switching to a long position on ZEC could imply several things:

First, an expectation of a short-term rebound in altcoins. Reducing shorts usually indicates the trader believes the downside is limited and a rebound is likely. His decision to cut shorts rather than add more suggests he might be waiting for a bounce.

Second, a relative bullish outlook on ZEC. Choosing to go long on ZEC among many coins indicates that the trader has identified some opportunity specific to ZEC.

Fundamentals and recent trend of ZEC

Price and Market Position

ZEC is currently priced at $398.07, ranking 18th in the cryptocurrency market cap list, with a market cap of approximately $656 million. It is a mid-cap project with certain liquidity and market attention.

Recent Price Action and Pressure

Over the past 7 days, ZEC has fallen more than 20%, indicating a clear downtrend. In this context, experienced traders choosing to go long suggest they believe the decline has been sufficient and a rebound is imminent.

Practical significance of this signal

Why is this signal worth paying attention to?

First, this trader’s historical performance is convincing. A profit of $8.7 million in the past week and nearly $100 million over the full cycle demonstrate that his trading system is effective. Second, this shift is not emotional but based on his swing trading methodology.

But also, rationality is necessary

It’s important to note that this trader’s typical holding period is short-term (about 20 hours). His long position on ZEC does not necessarily indicate a long-term bullish outlook but may simply reflect a short-term bounce within the next hours or days. Retail investors should not blindly follow but understand his logic: in cases of severe oversold conditions, a rebound is a probabilistic event.

Summary

The “20 Million Swing Hunter” strategy adjustment reflects a phenomenon: after more than 20% decline over 7 days, ZEC may be approaching a rebound point. His shift from reducing shorts to going long suggests he believes short-term downward momentum may be exhausted. However, the validity of this signal still depends on subsequent market performance, especially whether ZEC can truly rebound in the upcoming trading sessions. For ordinary investors, the most important thing is to understand the logic behind this signal rather than blindly follow.