Hayes Sells Pendle and Ethena at a Loss, Then Reacquires Them for Less: Inside the Crypto Whale Strategy

Whale Trading Strategy: Arthur Hayes, co-founder of BitMEX, sold assets at a loss to buy back cheaper during market dips, demonstrating a calculated approach that contrasts with retail traders who often hold through losses.

Market Dynamics: Whales can create fear in the market by selling into weakness, which accelerates price drops and triggers panic among retail investors, allowing them to accumulate assets at lower prices during capitulation.

Signals of Whale Activity: Key indicators of whale trading include large outflows to exchanges, sharp price drops on high volume, negative funding spikes, stablecoin inflows, and awareness of token unlock schedules.

Differences Between Whales and Retail Traders: Whales prioritize capital efficiency and liquidity management, cutting losses early and re-entering during market fear, while retail traders often hold onto losing positions due to emotional attachments and lack of strategic planning.