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Bitcoin whale risks $368M on a leveraged short ahead of FOMC

Bitcoin whale risks $368M on a leveraged short ahead of FOMC

GrafaGrafa2025/03/17 00:50
By:Mahathir Bayena

A Bitcoin (CRYPTO:BTC) whale has placed a high-stakes bet on the cryptocurrency’s decline, leveraging $368 million in a short position ahead of key macroeconomic events this week.

The move comes as the Federal Open Market Committee (FOMC) meeting on March 19 looms, potentially influencing investor sentiment and risk appetite.

The whale’s position involves 4,442 BTC at an entry price of $84,043, utilising 40x leverage.

Leveraged trading amplifies potential gains but also increases risks, as positions can be liquidated if prices move against the trader.

In this case, liquidation will occur if Bitcoin’s price exceeds $85,592.

Currently, the investor has earned over $2 million in unrealised profits but faces funding fee losses exceeding $200,000, according to Hypurrscan data.

This bet coincides with heightened market uncertainty.

Bitcoin’s price remains volatile, with analysts emphasising critical levels to watch.

“The key level to watch for the weekly close is $81,000 range. Holding above that would signal resilience, but if we see a drop below $76,000, it could invite more short-term selling pressure,” stated Ryan Lee, chief analyst at Bitget Research.

The timing of this leveraged position aligns with upcoming economic reports and the FOMC meeting.

Markets are pricing in a 98% probability that the Federal Reserve will maintain current interest rates.

However, any unexpected hawkish signals could negatively impact Bitcoin and other risk assets.

“The market largely expects the Fed to hold rates steady, but any unexpected hawkish signals could put pressure on Bitcoin,” Lee added.

Leveraged trading remains a contentious strategy in cryptocurrency markets due to its inherent risks.

Earlier this month, another trader gained $68 million using 50x leverage on Ether’s price decline.

Such examples highlight both the potential rewards and dangers of high-leverage positions.

At the time of reporting, the Bitcoin (BTC) price was $82,791.65.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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