A high-stakes crypto trader has placed a massive $368 million short position on Bitcoin, using extreme 40x leverage, as market uncertainty looms ahead of key macroeconomic events.
Despite recent volatility and bullish sentiment from some investors, the whale’s bet signals confidence in an imminent downturn for the world’s largest cryptocurrency.
According to blockchain data from Hypurrscan.io, the unidentified investor has shorted 4,442 Bitcoin at an average price of $84,043. The heavily leveraged position will be liquidated if Bitcoin climbs above $85,592.
Currently, the trader is up over $2 million in unrealized gains but has already incurred more than $200,000 in funding fees to maintain the position.
Leveraged trading allows investors to amplify their exposure to an asset by borrowing funds. While this strategy can magnify profits, it also increases liquidation risk if the market moves against the trade.
The current short position reflects a highly speculative bet on Bitcoin declining in the near term, just as critical economic reports are set to be released.
The position was built through multiple transactions over the past several hours, with some of the largest individual shorts including 97.36 BTC at $82,937, valued at approximately $8.07 million; 65.47 BTC at $84,010, worth about $5.5 million; 4.37 BTC at $84,000, totaling $367,066; and 2.92 BTC at $84,000, valued at $244,875.
These transactions, spread across multiple blocks, highlight the trader’s strong conviction that Bitcoin will face downward pressure in the coming days.
Market Braces for Federal Reserve Decision
The whale’s short bet comes ahead of the Federal Open Market Committee (FOMC) meeting scheduled for March 19. Investors are closely watching for signals from the Federal Reserve on future interest rate policies, which could impact risk assets, including Bitcoin.
Market analysts widely anticipate that the Fed will maintain current rates, with the CME Group’s FedWatch tool pricing in a 98% probability of no change.
Despite this expectation, any unexpected hawkish stance from the Fed could put downward pressure on Bitcoin and other cryptocurrencies. Ryan Lee, chief analyst at Bitget Research, noted that Bitcoin must hold above $81,000 to maintain bullish momentum. “The key level to watch for the weekly close is $81,000. If we drop below $76,000, it could trigger additional selling pressure,” Lee said.
While some traders are positioning for a Bitcoin drop, others remain bullish. In early March, another trader secured a $68 million profit using a 50x leveraged short on Ether, betting on an 11% price decline.
