A major Bitcoin whale has placed a $368 million short position with 40x leverage, betting on a price decline in the cryptocurrency ahead of the Federal Open Market Committee (FOMC) meeting scheduled for March 19. The position was initiated at $84,043 per Bitcoin, and it faces liquidation if the cryptocurrency rises above $85,592. Although the whale has gained over $2 million in unrealized profits, they also face more than $200,000 in funding fees for the position, according to data from Hypurrscan.
Investors are closely monitoring the FOMC meeting, as it may influence market sentiment and risk appetite. The CME Group’s FedWatch tool currently shows a 98% chance that the Federal Reserve will keep interest rates steady. However, any unexpected hawkish signals from the Fed could put downward pressure on Bitcoin and other risk assets.
Ryan Lee, chief analyst at Bitget Research, highlighted the significance of Bitcoin maintaining a weekly close above the $81,000 mark. "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," he told Cointelegraph. Bitcoin’s price remains vulnerable to significant volatility due to growing macroeconomic uncertainty, including factors like global trade tariffs.
Leveraged trading is a high-risk strategy that amplifies both gains and losses as investors borrow funds to increase their position size. Earlier in March, a savvy trader gained $68 million on a 50x leveraged short position on Ether (ETH) after it experienced an 11% price drop. While leveraged trades offer the potential for large profits, they come with substantial risks, especially when market conditions are uncertain.
As Bitcoin’s price struggles to maintain support levels, traders are closely watching key technical levels to determine its near-term outlook. Maintaining support above $81,000 would signal resilience in the face of potential selling pressure, while any drop below $76,000 could trigger further downside movements.
In addition to the FOMC meeting, the broader economic climate is contributing to the market’s volatility. Investors are worried about potential changes in global trade tariffs, which could add more uncertainty to the market. Despite these risks, some investors are still willing to bet on short-term price fluctuations, using leveraged positions to maximize their potential returns.