Trader's Bold Strategy: Shorting Crypto Majors Like BTC and ETH While Long on Gold and Silver

In a striking display of market conviction, a trader on the Hyperliquid platform has positioned themselves against the cryptocurrency sector while favoring traditional safe-haven assets. According to data from hypurrscan.io, the address 0x7c930969fcf3e5a5c78bcf2e1cefda3f53e3c8fd has established a substantial portfolio worth 264.7 million USD as of February 22, 2026. This includes two long positions in precious metals—gold (GOLD) and silver (SILVER)—paired with an aggressive 79 short positions targeting major cryptocurrencies such as BTC, ETH, SOL, DYDX, AVAX, and a range of altcoins. This setup reflects a broader sentiment where investors are hedging against crypto volatility by pivoting to commodities, potentially signaling upcoming trading opportunities in cross-asset correlations.

The trader's strategy has already yielded impressive results, with a floating profit of 57.3 million USD. Notably, most short positions are in the green, except for minor floating losses of around 1,000 USD each on ETH and SOL. This performance underscores the effectiveness of shorting crypto amid recent market pressures, where BTC has faced resistance levels around key psychological barriers. Traders monitoring similar setups might consider entry points for short trades on BTC/USD pairs if it fails to break above recent highs, while watching gold's support at historical averages for long entries. On-chain metrics, such as declining trading volumes in ETH and SOL perpetual futures, further validate this bearish stance, as reduced liquidity often precedes sharper downturns.

Market Implications and Trading Opportunities in Crypto vs. Precious Metals

From a trading perspective, this position highlights emerging opportunities in arbitrage between crypto and traditional markets. For instance, as BTC and ETH experience downward pressure—potentially testing support levels at 50,000 USD for BTC and 2,500 USD for ETH—precious metals like gold could see inflows as a flight to safety. Historical data shows that during crypto market corrections, gold often rallies, offering pairs trading strategies such as long GOLD/BTC ratios. Institutional flows into commodities have been rising, with silver's volatility providing high-reward scalping opportunities on platforms like Hyperliquid. Traders should track 24-hour volume changes in these assets; for example, if SOL's on-chain transaction volumes drop below average, it could amplify short-side gains, while gold's spot prices above 2,000 USD per ounce signal sustained bullish momentum.

Beyond the immediate profits, this trader's approach invites analysis of broader market indicators. Moving averages on BTC's daily charts suggest a bearish crossover, potentially driving more short interest. In contrast, silver's relative strength index (RSI) hovering in overbought territory might prompt profit-taking, but overall, the strategy capitalizes on crypto's high beta nature versus gold's stability. For retail traders, this could mean exploring leveraged positions in AVAX or DYDX shorts, balanced with gold longs to mitigate risk. Sentiment analysis from social platforms indicates growing pessimism in altcoins, aligning with this trader's 79 short bets. As we assess trading volumes across exchanges, correlations between crypto drawdowns and precious metal upticks offer actionable insights—consider stop-loss orders near recent lows for BTC at 48,000 USD to capture potential rebounds while maintaining short biases.

Ultimately, this case study emphasizes diversified trading strategies in volatile markets. With crypto facing regulatory headwinds and macroeconomic uncertainties, pivoting to assets like gold and silver could provide portfolio resilience. Traders eyeing similar plays should focus on real-time indicators, such as funding rates in perpetual contracts for ETH and SOL, which have shown negative trends favoring shorts. By integrating these elements, one can identify high-probability trades, such as entering short positions on SOL/USD if it breaches key support, while scaling into gold longs during risk-off periods. This narrative not only showcases profitable positioning but also guides informed decision-making in cryptocurrency trading landscapes.