#BTC $BTC #TradingSignals

Short of the Year: Trader Bet $368 Million on Bitcoin to Fall Ahead of Fed Meeting

A major cryptocurrency investor has opened a short position of 4,442 bitcoins with 40x leverage ahead of a busy economic week. The deal is worth over $368 million, with an average entry price of $84,043.

According to Hypurrscan, the Bitcoin whale has already earned more than $2 million in unrealized profits on the fall in the exchange rate. However, his position will be liquidated if the price of Bitcoin rises above $85,592. At the same time, the investor has already lost more than $200,000 in fees for financing the position.

Strategy and possible motives

Of particular interest is that a major player has placed orders to close a short position at $68,774. Such a deep take profit can be interpreted as a signal to the market about the forecast of a significant decline.

The trader's motives remain a matter of speculation. It could be a gambler with a large capital, an investor with inside information, or even an attempt to manipulate the market.

Community vs. Whale

After information about a large short position appeared on the social network X, a campaign to raise funds to counter the whale began. Users plan to organize a so-called "short squeeze" - a situation of forced closing of short positions due to a sharp increase in the price of an asset. This is reminiscent of the famous case with GameStop shares, when traders from the Reddit platform were able to resist hedge funds.

Context of macroeconomic events

The massive bet on a decline comes ahead of major economic events, including the Federal Open Market Committee (FOMC) meeting on March 19. The Fed's decisions and comments could significantly impact investors' appetite for risk assets, including Bitcoin.

The opening of such a large short position in Bitcoin may signal growing skepticism among some major players about the short-term prospects of the cryptocurrency market ahead of important macroeconomic events.