A Bitcoin whale has secured nearly $10 million in profit after closing a 40x leverage short position worth over $516 million, betting against Bitcoin’s price ahead of the upcoming Federal Open Market Committee (FOMC) meeting this week.
The investor shorted 6,210 BTC at an entry price of $84,043 per Bitcoin, using borrowed funds to increase the size of the position.
The trader closed all short positions within a few hours, securing $9.46 million in profit, according to Hypurrscan data.
Whale Dodges Liquidation Hunt, Adds $5M to Bitcoin Short Position
Leveraged trades, while offering the potential for high gains, also come with increased risks, as they can lead to liquidation if price movements go against the trader.
In this case, the whale risked liquidation if Bitcoin’s price exceeded $85,592.
At one point, the whale was forced to add $5 million to his position after a group of traders attempted to trigger his liquidation—a tactic commonly known as “liquidation hunting”—but ultimately failed, as noted by blockchain analytics firm Lookonchain in a March 17 post on X.
Following the successful short trade, the whale shifted focus to Ethereum, using a portion of the profits to accumulate over 3,200 ETH worth approximately $6.1 million, according to Etherscan data.
The timing of the whale’s move coincides with growing market anticipation surrounding the FOMC meeting on March 19, which could influence investor sentiment in the cryptocurrency market.
The meeting is expected to provide further clarity on the Federal Reserve’s monetary policy for 2025, a key factor that could impact risk assets like Bitcoin.
Meanwhile, inflation-related concerns are showing signs of easing following the release of February’s U.S. Consumer Price Index (CPI), which recorded a 2.8% year-on-year increase, slightly below the expected 2.9%.
Market expectations currently indicate a 99% probability that the Federal Reserve will keep interest rates unchanged, according to the latest estimates from the CME Group’s FedWatch tool.
With macro conditions shifting and Bitcoin’s volatility increasing, traders and investors will be watching closely for signals from the Fed that could shape the next major market move.
Bitcoin Braces for FOMC Decision Amid Market Uncertainty
In a comment shared with Cryptonews.com, Gracy Chen, CEO of Bitget, said that Bitcoin’s recent dip is surprising given Donald Trump’s pro-crypto stance and the growing idea of a U.S. strategic Bitcoin reserve.
While the U.S. government hasn’t started accumulating Bitcoin, Chen believes it could soon bring institutional legitimacy and long-term price support.
Additionally, the Stablecoin Bill’s progress through Congress signals a shift toward a blockchain-based financial system.
Despite market uncertainty, Chen sees $73K-$78K as a solid entry point, with a potential $200K Bitcoin price target within 1-2 years.
“In the next 1-2 years, BTC at 200k isn’t as far-fetched as most would think.”
Meanwhile, Ryan Lee, Chief Analyst at Bitget Research, said that the Fed will keep interest rates at 4.25%-4.50%.
He claimed that Bitcoin could rally if the Fed hints at future rate cuts, but a hawkish stance may pressure risk assets.
He expects Bitcoin to trade between $80K-$86K and Ethereum to hold between $1,800-$2,100 post-FOMC.
The post Crypto Whale Nets $10 Million in Profit on 40x Leverage Bitcoin Short appeared first on Cryptonews.
Credit: Source link
