A prominent Bitcoin whale is staking a gigantic sum on a short-term drop in Bitcoin’s value, right before a week replete with pivotal economic reports that might drastically sway Bitcoin’s price direction and investor risk tolerance.
This major crypto investor, colloquially referred to as a whale, has initiated a 40x leveraged short position involving more than 4,442 Bitcoin (BTCUSD), valued over $368 million, essentially gambling on a dip in Bitcoin’s price.
Leveraged positions, which use borrowed funds to amplify the potential size of an investment, can heighten both potential gains and losses, making them riskier than standard investment positions. This particular Bitcoin whale established the $368 million position at $84,043, facing liquidation if Bitcoin’s price surges beyond $85,592.
Though the investor has accrued over $2 million in unrealized profit, he also has suffered a loss exceeding $200,000 in funding fees for the position, as per Hypurrscan’s data.
Although leveraged trading carries substantial risk, some crypto investors have reaped significant profits using this technique. A shrewd trader raked in $68 million on a 50x leveraged short position in March, capitalizing on Ether’s (ETHUSD) 11% price drop.
The whale’s hefty wager comes prior to a week filled with important macroeconomic updates, including the forthcoming Federal Open Market Committee (FOMC) meeting on March 19, which may influence investor interest in risk assets like Bitcoin.
Bitcoin must seal a weekly close above $81k to stave off pre-FOMC slide: analysts. Amid increasing macroeconomic uncertainty concerning global trade tariffs, Bitcoin’s price remains vulnerable to significant downside volatility.
To dodge downside volatility preceding the FOMC meeting, Bitcoin needs to secure a weekly close above $81,000, says Ryan Lee, head analyst at Bitget Research. Lee anticipates more short-term selling pressure if Bitcoin falls below the $76,000 mark, especially with the upcoming FOMC meeting on March 19.
Present market anticipations are placing a 98% probability on the Fed maintaining steady interest rates, as per the most recent predictions from the CME Group’s FedWatch tool. “Any unexpected hawkish signals could exert pressure on Bitcoin and other risk assets,” warns Lee.
