**Crypto Whales Are Betting Against Altcoins as Markets Brace for Powell’s Speech**

Big-time crypto investors, often called “whales,” are now changing their strategies and placing big bets against popular altcoins like Ethereum (ETH), XRP, and others. According to data from LookOnChain, these whales are using heavy leverage to short altcoins, meaning they’re betting prices will go down. This shift in strategy comes during a time of rising market volatility and uncertainty, especially with Federal Reserve Chairman Jerome Powell set to give a key speech that could shake up the financial markets.

**Whales Are Shorting XRP, ETH, and Other Altcoins**

Three major crypto whales — known for making large profits in past bear markets — are now opening highly leveraged short positions on several altcoins. One whale in particular opened a bold 20x leveraged short on Bitcoin (BTC) and Ethereum (ETH), aiming for a potential $160 million gain. But it’s risky: the ETH position is already showing a $157,000 loss, and the XRP trade is down $263,000 — even though XRP’s price only moved by $0.04.

This whale isn’t stopping there. They’ve also placed leveraged bets against other coins like Dogecoin (DOGE), PEPE, and Astar (ASTER), using 3x to 5x leverage. A particularly risky 20x short on Solana (SOL) has already resulted in nearly $1 million in losses. These trades show that even small price movements can lead to big losses when leverage is this high.

The shift in sentiment is also clear in the overall crypto market. The Crypto Fear & Greed Index — a popular tool for measuring investor emotions — dropped sharply from 70 (greed) to 38 (fear) in just one week. That means investors are becoming much more cautious.

**Why Powell’s Speech Matters to Crypto Traders**

All eyes are now on Jerome Powell, head of the U.S. Federal Reserve, who is scheduled to speak today. His comments could affect interest rate expectations and the direction of the U.S. economy — which in turn could influence crypto prices.

U.S. stock markets are already showing signs of nervousness. The Dow Jones is down, and the Nasdaq has dropped about 1.1% as traders wait to hear what Powell has to say. Since crypto often reacts quickly to changes in market sentiment and liquidity, Powell’s speech could cause sharp price movements.

Adding to the uncertainty are recent remarks from Philadelphia Fed President Anna Paulson, who pointed out signs of a weakening job market. That could lead the Fed to consider cutting interest rates, which may encourage more cautious behavior from investors.

**High Risk, High Reward – or Big Losses**

The current trend of shorting altcoins with high leverage shows how risky crypto trading can be — especially during uncertain times. Whales are trying to profit from market drops, but they’re also exposing themselves to massive losses if prices move even slightly against them.

With Powell’s speech looming and market sentiment shifting fast, traders should be prepared for sudden changes in direction. Leveraged trades in volatile altcoins like ETH, XRP, and SOL require extra caution and strong risk management.

**Key Takeaways:**
– Crypto whales are heavily shorting altcoins like ETH, XRP, SOL using high leverage.
– These positions are already showing big losses despite small price moves.
– Market sentiment has shifted from greed to fear in just a week.
– Jerome Powell’s upcoming speech could impact crypto prices and investor behavior.
– Leveraged altcoin trading is risky and can result in major losses quickly.

Always remember: the crypto market moves fast and carries high risk. Traders should stay informed and manage their positions carefully during times of uncertainty.