A large bitcoin investor, often called a “whale,” made almost $10 million in profit through a high-risk trading strategy. The whale placed a short position using 6,210 BTC, borrowing funds to take a 40x leverage position worth over $516 million. This trade bet that bitcoin’s price would decrease, and the entry price was $84,043 per bitcoin.(Crypto Whale Nets $10 Million in Profit on 40x Leverage Bitcoin Short)
The whale quickly closed all the short positions within a few hours, securing $9.46 million in profit, as reported by Hypurrscan. This move was made just before the upcoming Federal Open Market Committee (FOMC) meeting, which could potentially affect bitcoin’s price further.
Whale Dodges Liquidation Hunt, Adds $5M to bitcoin Short Position
Leveraged trades can lead to high profits but come with big risks, as traders can lose their investments if the market moves against them. In this case, a large investor, or “whale,” faced the risk of losing money if bitcoin’s price went above $85,592. To avoid this, the whale added $5 million to their position when other traders tried to force their loss—a tactic called “liquidation hunting.” However, the whale managed to succeed.
After this, the whale shifted focus to Ethereum, using part of their profit to buy more than 3,200 ETH, worth about $6.1 million, according to data from Etherscan.
This happened as people looked forward to the Federal Reserve’s March 19 meeting, which could influence how investors feel about the cryptocurrency market. The meeting is expected to provide updates on the Fed’s monetary policy for 2025, which might affect assets like Bitcoin.
At the same time, inflation concerns are calming down, with February’s Consumer Price Index showing a 2.8% annual increase, which is slightly less than the expected 2.9%. Current estimates suggest there’s a 99% chance the Fed will keep interest rates steady.
As the market adjusts and bitcoin’s price becomes more unpredictable, investors are closely watching for any clues from the Fed that could guide the next big market changes.
Bitcoin Braces for FOMC Decision Amid Market Uncertainty
Gracy Chen, CEO of Bitget, shared her thoughts with Cryptonews.com about bitcoin’s recent price drop. She found it surprising, especially with Donald Trump’s support for crypto and the idea of the U.S. creating a Bitcoin reserve. Although the U.S. hasn’t started buying Bitcoin yet, Chen thinks it could happen soon, which might boost its legitimacy and long-term value.
She also mentioned that the progress of the Stablecoin Bill in Congress shows a move toward a financial system based on blockchain. Despite the current market uncertainty, Chen believes Bitcoin’s price could reach $200,000 in the next 1-2 years, with $73,000-$78,000 being a good buying range.
Ryan Lee, Chief Analyst at Bitget Research, added that the Federal Reserve is likely to keep interest rates at 4.25%-4.50%. He said Bitcoin’s price might rise if the Fed hints at lowering rates in the future, but if the Fed takes a stricter approach, it could hurt risky investments. Lee expects Bitcoin to trade between $80,000-$86,000 and Ethereum to stay between $1,800-$2,100 after the Fed’s meeting.