An anonymous trader identified only as 0x58bro has reportedly amassed $7 million in unrealized profits through shorting Ethereum (ETH) and a few other cryptocurrencies, according to findings from on-chain intelligence platform Arkham.

What stands out about this trader’s success is that it’s occurring while numerous prominent figures in the cryptocurrency sector have incurred eight-figure losses betting on rising prices.

The Quiet Whale Swimming Against the Current

Despite having a portfolio worth just under $13 million, 0x58bro has a limited presence on social media, boasting only 1,300 followers on X. Arkham’s analysis indicates that the trader’s significant profits primarily originate from two positions: a $3.7 million profit from shorting ETH and $1.45 million from shorting ENA, the governance token of Ethena Labs.

The contents of the trader’s wallet suggest a tactical reaction to current market fluctuations. They maintain over $7.5 million in Aave’s interest-bearing ETH token (aETHWETH) and $5 million in Aave’s USDC deposit token (aETHUSDC), hinting at a strategy to generate yield while keeping options open for further downturns.

Additionally, a smaller holding of 10 million HANA tokens, valued at approximately $353,000, represents their only notable long investment.

The timing of these short positions has been crucial, with Ethereum struggling to hold its ground recently, and prices remaining around the $2,000 psychological support level.

Market Backdrop Shows Leverage Risks and Speculation Cycles

While 0x58bro profits from a declining market, other traders have suffered catastrophic results trying to catch a falling knife. On-chain insights reveal that Machi Big Brother, a notable crypto figure previously worth nearly nine figures, saw his Hyperliquid account drop to below $1 million. To fulfill margin calls on his long positions, he resorted to tapping into PleasrDAO treasury funds deposited five years prior, resulting in total losses of $28 million.

The disparity also affects institutional players. Trend Research, run by Jack Yi, recently completed a complete exit from its Ethereum holdings after accumulating around $1.34 billion in ETH at an average entry point of $3,180. This exit resulted in a loss of approximately $869 million, only days after Yi predicted ETH would hit $10,000.

Despite this unfavorable backdrop, on-chain data from CryptoQuant reveals that wallets traditionally showing no outflows, holding a minimum of 100 ETH, are still actively accumulating during the downturn. These wallets now represent about 23% of Ethereum’s circulating supply and have continued their accumulation even when prices traded below their average cost basis.

It’s uncertain whether 0x58bro will continue to hold short positions or join the accumulating wallets speculating on a rebound. However, for the moment, this trader with just 1,300 followers has surpassed an industry of influencers with millions observing their every move.