On-chain just captured a major move—an institutional holder on a top exchange has a long position in altcoins worth $248 million, with unrealized losses exceeding $28 million, and paid $3.11 million in funding fees. This data is quite eye-catching.

Looking at the market data more specifically makes it even clearer. This large holder is heavily leveraged with 15x on ETH (a $170 million position), with an unrealized loss of $11.91 million; using 10x leverage to hold XRP (a $72.47 million position), with an unrealized loss of $16.53 million. Only HYPE is doing relatively okay, with a small profit of $200,000. What does this indicate? The market is highly polarized, with high-leverage longs bleeding out, and the funding rates across the exchange are still so exaggerated, signaling a strong short squeeze. Short-term liquidation pressure definitely exists.

But here’s an interesting phenomenon: massive on-chain whale losses are often not the end of trouble but rather a reverse signal. When big players are forced to cut losses and bleed, the bottom is actually close to surfacing.

From the news perspective, this large holder’s previous betting strategy failed, and now switching to longs right before a sharp drop clearly reflects emotional decision-making. But market laws often go against human nature—when everyone is panicking over these loss figures, the selling pressure is actually waning. Such exaggerated funding rates usually indicate that the perpetual contract market is overheated. Once these high-leverage positions are cleared, the rebound will be much faster than expected.

Currently, both ETH and XRP are in oversold territory. The pain points for these big players are often the starting points for the next rebound. In the next 1-2 weeks, the market is likely to hit the final bottom zone, then initiate a relatively strong rebound. Altcoins will show rotation and differentiation, with resilient assets like HYPE potentially attracting funds earlier.

The market always shifts between squeezing out shorts and longs. At this point, high leverage has been cleaned out, short-term pressure is released, and the next step is the accumulation of reverse momentum. Stay firm and don’t panic at the bottom. Sharp declines during a bull market are normal, but the main trend remains unchanged.