Why is ETH getting more expensive?
One of the recent factors that fueled retail investors' interest in Ether was the rumors that the Abraxas Capital fund was actively buying up the asset on the spot market. It was reported that the volume of their purchases reached $561 million during the week. This caused a wave of speculation: either the fund has a strong confidence in further growth, or they have some kind of inside knowledge about the upcoming movement.
However, it later turned out that simultaneously with the purchases, Abraxas opened large short positions in Hyperliquid for about $350 million. Moreover, due to the bias toward longs among retail traders, the fund is earning a lot of profit due to high payouts on fundings.
In fact, the fund's strategy is to play both sides for the sake of arbitrage and fundraising, rather than betting on ETH growth. For many, this came as a surprise and cooled sentiment, reducing the level of optimism about the continuation of the rally.
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