A Bitcoin whale has closed over half a billion in short positions, betting on Bitcoin price’s decline ahead of the much-awaited Federal Open Market Committee (FOMC) meeting this week.
A large crypto investor, or whale, made nearly $10 million profit after closing a 40x leverage short position for 6,210 Bitcoin (BTC) — worth over $516 million — which functions as a de facto bet on Bitcoin’s price fall.
Leveraged positions use borrowed money to increase the size of an investment, which can boost the size of both gains and losses, making leveraged trading riskier compared to regular investment positions.
Bitcoin whale closed shirt positions. Source: Hypurrscan
The savvy whale closed all his short positions within a few hours, making a $9.46 million profit from Bitcoin’s decline, Hypurrscan data shows.
The whale opened the initial $368 million position at $84,043 and faced liquidation if Bitcoin’s price surpassed $85,592.
The whale managed to turn a profit, despite having to add $5 million to his short, after a publicly-formed team of traders started to “hunt” his short position’s liquidation, which ultimately failed, noted Lookonchain, in a March 17 X post.
Bitcoin whale made $9.4 million in profit. Source: Hypurrscan
After closing his Bitcoin shorts, the whale started accumulating Ether (ETH) with his profits, acquiring over 3,200 Ether for over $6.1 million at 7:31 am UTC on March 18, Etherscan data shows.
The profit-taking comes a day ahead of the upcoming FOMC meeting on March 19, which will offer market participants more cues on the Federal Reserve’s monetary policy path for 2025 and has the potential to impact investor appetite for risk assets such as Bitcoin.
Related: Bitcoin experiencing ‘shakeout,’ not end of 4-year cycle: Analysts
Bitcoin may see upside on easing inflation concerns: analyst
Inflation-related concerns are starting to ease following the release of February’s US Consumer Price Index (CPI), which revealed a lower-than-expected 2.8% year-on-year increase compared to the expected 2.9%.
Easing inflation-related concerns may be a positive sign for the upcoming FOMC meeting, according to Fumihiro Arasawa, co-founder and CEO of xWIN Research.
The lower CPI reading may also be a positive sign for Bitcoin’s trajectory, the CEO told Cointelegraph, adding:
“This suggests that inflationary pressures are gradually easing, which could influence the Federal Reserve’s monetary policy decisions.”
“Bitcoin’s short-term price action will depend on whether it can hold the $81,000 support level. A sustained hold could stabilize sentiment, while a breakdown may trigger further corrections,” added Arasawa.
Related: Crypto market’s biggest risks in 2025: US recession, circular crypto economy
Bitcoin target rate probabilities. Source: CME Group’s FedWatch tool
Markets are currently pricing in a 99% chance that the Fed will keep interest rates steady, according to the latest estimates of the CME Group’s FedWatch tool.
“The market largely expects the Fed to hold rates steady, but any unexpected hawkish signals could put pressure on Bitcoin and other risk assets,” Ryan Lee, chief analyst at Bitget Research, told Cointelegraph.
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