- Bitcoin whale closed over $516 million in short positions just before FOMC meeting, securing $9.46 million in profit despite liquidation attempts by other traders.
- After closing shorts, the whale immediately redeployed profits into Ethereum, purchasing over 3,200 ETH worth more than $6.1 million.
- Markets predict a 99% chance of steady interest rates at the upcoming Federal Reserve meeting, with easing inflation potentially supporting Bitcoin’s price trajectory.
A major cryptocurrency investor has liquidated over half a billion dollars in Bitcoin short positions ahead of this week’s Federal Reserve meeting, walking away with nearly $10 million in profits. The whale closed leveraged short positions totaling 6,210 Bitcoin (worth approximately $516 million) that were essentially betting against Bitcoin’s price.
The investor employed 40x leverage—a high-risk trading strategy that amplifies potential gains and losses by using borrowed funds to increase position size. According to Hypurrscan data, the whale closed all short positions within hours, securing $9.46 million in profit from Bitcoin’s recent price decline.
The strategic trading operation began when the investor opened an initial $368 million position at $84,043. This position faced potential liquidation if Bitcoin’s price had exceeded $85,592. Despite needing to add $5 million to the position after a coordinated effort by other traders to trigger liquidation, the whale ultimately prevailed. Lookonchain documented this attempted “liquidation hunt” in a March 17 post on X.
Following the successful Bitcoin trades, the investor quickly pivoted to Ethereum, purchasing over 3,200 ETH for approximately $6.1 million early on March 18, according to Etherscan transaction data.
The timing of these maneuvers is particularly significant, occurring just before the Federal Open Market Committee (FOMC) meeting on March 19. This meeting will provide crucial insights into the Federal Reserve’s monetary policy direction for 2025, potentially influencing investor appetite for risk assets including cryptocurrencies.
Inflation concerns have begun to ease following February’s U.S. Consumer Price Index report, which showed a lower-than-anticipated 2.8% year-on-year increase compared to the expected 2.9%. Fumihiro Arasawa, co-founder and CEO of xWIN Research, told Cointelegraph this could be positive for the upcoming FOMC meeting and Bitcoin’s trajectory:
“This suggests that inflationary pressures are gradually easing, which could influence the Federal Reserve’s monetary policy decisions.”
Arasawa further noted: “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.”
According to the CME Group’s FedWatch tool, markets are currently pricing in a 99% probability that the Federal Reserve will maintain current interest rates. Ryan Lee, chief analyst at Bitget Research, cautioned: “The market largely expects the Fed to hold rates steady, but any unexpected hawkish signals could put pressure on Bitcoin and other risk assets.”
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