Bitcoin Whale's $368M Short Bet Before FOMC
A significant Bitcoin whale has made a substantial bet against Bitcoin's short-term price, placing a 40x leveraged short position worth over $368 million (approximately 4,442 BTC) ahead of the upcoming Federal Open Market Committee (FOMC) meeting and other key economic reports.
High-Stakes Gamble
This leveraged short position represents a bet that Bitcoin's price will decline. Leveraged trading, using borrowed funds to amplify potential gains (and losses), significantly increases risk. The whale initiated this position at $84,043 per BTC; liquidation will occur if the price rises above $85,592.
Currently, the whale shows a small unrealized profit of over $2 million. However, funding fees on the position have resulted in a loss exceeding $200,000.
Source: Hypurrscan
Macroeconomic Factors and Market Sentiment
This high-stakes trade comes as investors anticipate the FOMC meeting on March 19th and other critical economic data releases. These events could significantly impact investor risk appetite and Bitcoin's price.
Analyst Perspective: Weekly Close Crucial
Ryan Lee, chief analyst at Bitget Research, suggests Bitcoin needs a weekly close above $81,000 to avoid potential downside pressure before the FOMC decision. A drop below $76,000 could exacerbate selling pressure.
Markets currently price in a 98% probability that the Fed will maintain interest rates, based on the CME Group's FedWatch tool.
Source: CME Group’s FedWatch tool
However, any unexpected hawkish signals from the Fed could negatively impact Bitcoin and other risk assets.
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