18.03.2025 19:01
Before the Fed's decision, a Bitcoin whale closed a short position of $516 million opened with 40x leverage, realizing a profit of $9.4 million. The whale's purchase of Ether after closing the Bitcoin position indicates that investors are closely monitoring the interest rate decisions and inflation data from the U.S. Federal Reserve (Fed).
A Bitcoin whale closed its $516 million short position, which was opened with 40x leverage, and made a profit of $9.4 million. The whale's purchase of Ether after closing its Bitcoin position indicates that investors are closely monitoring the Fed's interest rate decisions and inflation data.
Bitcoin Investor Changed Strategy Before FOMC Meeting
A well-known investor in the crypto market, recognized for large-volume transactions, closed a $516 million Bitcoin short position, earning a profit of $9.4 million. According to Hypurrscan data, this investor terminated the position just before the Federal Open Market Committee (FOMC) meeting. The transaction was executed on 6,210 Bitcoin using 40x leverage.
Leveraged trading allows investors to open larger positions by combining their own capital with borrowed funds. While this method increases potential gains, it also brings a corresponding risk of loss, making it significantly riskier compared to standard investment positions.
The term "informed" used to describe the whale is not without reason. The investor capitalized on the decline in Bitcoin's value by closing all short positions within a short period, earning $9.46 million. Initially opening a position worth $368 million, the whale executed this at a level of $84,043. When Bitcoin's value exceeded $85,592, the position faced the risk of liquidation.
According to information shared by Lookonchain on March 17 on the X platform, a group of public traders initiated a "hunt" to liquidate the whale's short position, but the whale managed to save the situation by adding another $5 million to its position and ultimately succeeded in making a profit.
Etherscan data shows that the investor who closed its short positions on Bitcoin immediately turned to accumulating Ether with the profit obtained. The whale purchased over 3,200 Ether worth more than $6.1 million on the morning of March 18.
This profit realization occurred just before the FOMC meeting scheduled for March 19. The meeting is expected to provide market participants with important clues about the U.S. Federal Reserve's monetary policy path for 2025 and has the potential to significantly affect investor appetite for risky assets like Bitcoin.
On the other hand, the February U.S. Consumer Price Index data, which came in at 2.8%, below the expectations of 2.9% year-on-year, has eased concerns about inflation. Fumihiro Arasawa, co-founder and CEO of xWIN Research, stated that this situation indicates that inflationary pressures are gradually easing and could influence the Fed's monetary policy decisions.
Arasawa noted, "The short-term price movement of Bitcoin will depend on whether it can maintain the support level of $81,000. Maintaining this level could stabilize market sentiment, but if this level is broken, we may see further corrective movements."