A significant Bitcoin$BTC
investor, commonly referred to as a "whale," recently engaged in a high-risk trading strategy by opening a massive short position worth approximately $368 million, utilizing 40x leverage. This move was a bet on Bitcoin's price declining ahead of the Federal Open Market Committee (FOMC) meeting scheduled for March 19, 2025.
The position was initiated at a price of $84,043 per Bitcoin$BTC , with a liquidation threshold set at $85,592. Despite the inherent risks associated with such high leverage, the whale managed to secure an unrealized profit of over $2 million. However, maintaining this position incurred funding fees exceeding $200,000.
The whale's actions attracted attention from other market participants, leading to coordinated efforts to trigger the liquidation of this substantial position. In response, the whale bolstered their position by adding $5 million in collateral, ultimately closing the short position with a profit of approximately $9.4 million after eight days.
Following the closure of the short position, the investor reinvested a portion of the profits into Ethereum$ETH
(ETH), acquiring over 3,200 ETH valued at more than $6 million.
This event underscores the volatility and high-stakes nature of leveraged trading in the cryptocurrency market, especially during periods of economic uncertainty and significant financial events like FOMC meetings.