A significant Bitcoin whale has initiated a $368 million short position** using **40x leverage**, anticipating a price drop ahead of the Federal Reserve's March 19 FOMC meeting. The position, opened at **$84,043 per BTC, faces liquidation if Bitcoin surpasses $85,592**. Current data shows **$2 million in unrealized profits but over $200,000 in funding fees.
Key Details of the Short Position
- Position Size: $368 million
- Leverage: 40x
- Entry Price: $84,043/BTC
- Liquidation Threshold: $85,592
- Funding Fees: $200,000+
Market Context: FOMC Meeting Impact
Investors are closely monitoring the Fed’s upcoming decision, with a 98% probability of unchanged interest rates. However, unexpected hawkish signals could pressure Bitcoin and other risk assets.
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Ryan Lee, Chief Analyst at Bitget Research, emphasizes $81,000 as a critical support level for Bitcoin’s weekly close:
"A drop below $76,000 could invite short-term selling pressure, while holding above $81,000 signals resilience."
Risks of Leveraged Trading
- Amplified Gains/Losses: 40x leverage magnifies volatility risks.
- Recent Example: A trader gained $68 million on a 50x leveraged ETH short during an 11% price drop.
Technical Outlook for Bitcoin
- Support Levels: $81,000 (key), $76,000 (risk threshold).
- Macro Uncertainty: Global trade tariffs and Fed decisions add volatility.
FAQ
Q: What happens if Bitcoin’s price exceeds $85,592?
A: The whale’s position faces automatic liquidation.
Q: Why is the FOMC meeting significant?
A: Fed policies influence market sentiment and risk appetite, directly impacting crypto prices.
Q: How does leverage affect this trade?
A: 40x leverage means profits/losses are 40 times the initial investment, making it extremely high-risk.
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Disclaimer: This content is for informational purposes only. Conduct your own research before making financial decisions.