$BTC #BTC

Major Player Closes $516M Bitcoin Short Position — Profits $9.4M in 8 Days

A major Bitcoin holder has made a $9.4 million jackpot by closing a $516 million short position in just eight days. A bearish play on the price of Bitcoin has paid off for this investor.

Bet against Bitcoin

An anonymous large investor, or “whale,” opened a short position of 6,210 bitcoins (equivalent to $516 million) using 40x leverage. This approach involves using borrowed funds to increase the size of the trade, which greatly amplifies both potential profits and losses.

According to Hypurrscan, the investor entered the position at $84,043 per bitcoin, and faced liquidation if the price rose above $85,592. However, good timing allowed him to exit the trade, earning $9.46 million.

Risky maneuver

To hold on to his position, the whale had to add $5 million after a group of public traders tried to organize a "hunt" to liquidate him. Their attempt was unsuccessful, and as a result, the investor closed the short, coming out with a nice profit.

Etherscan data shows that after taking profits, the whale switched to Ethereum and bought over 3,200 Ethereum worth $6.1 million.

Context: Inflation Impact and Fed Meeting

This deal took place against the backdrop of the publication of the February Consumer Price Index (CPI) in the United States, which showed growth of 2.8% instead of the expected 2.9%. Such data indicates a decrease in inflation risks, which in theory could have a positive effect on the further dynamics of Bitcoin.

The Federal Open Market Committee (FOMC) will meet on March 19, where investors are expected to receive additional signals about the Federal Reserve’s monetary policy for 2025. There is a 99% chance that the rate will remain unchanged, according to the Chicago Mercantile Exchange’s FedWatch tool. However, analysts warn that any unexpected tightening of rhetoric could put pressure on risk assets, including Bitcoin.