A Bitcoin whale is betting on hundreds of millions of dollars for a short -term decrease in the price of Bitcoin before a fundamental week full of key economic reports that could significantly influence their career and the risk of risk of investors.
A large cryptographic inverter, or whale, has opened a short -signed 40x position for more than 4.442 bitcoin (BTC) —worth more than $ 368 million, which works as a de facto bet in the fall of Bitcoin’s price.
The leverage positions use money borrowed to increase the size of an investment, which can increase the size of profits and losses, which makes the leveraged trade more risky compared to regular investment positions.
The Bitcoin whale opened the $ 368 million position to $ 84,043 and faces liquidation if the price of Bitcoin exceeds $ 85,592.
Fountain: Hippurrcan
The investor has generated more than $ 2 million in profits not made, however, it has a loss of more than $ 200,000 in the financing rates of its position, according to Hypurrscan data.
Despite the highest risk of leveraged trade, some cryptographic investors are obtaining significant profits with this strategy. At the beginning of March, an intelligent merchant won $ 68 million in a short -signed 50x position, banking the decrease in the price of 11% Ethher (ETH).
The leverage commitment is ahead of a week of numerous significant macroeconomic releases, including the next meeting of the Federal Open Market Committee (FOMC) on March 19, which can affect the appetite of investors by risk assets such as Bitcoin.
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Bitcoin needs a weekly closure above $ 81,000 to avoid the disadvantage prior to the FOMC
The price of Bitcoin continues to run the risk of significant volatility down due to the growing macroeconomic uncertainty around global commercial rates.
To avoid down volatility before the FOMC meeting, Bitcoin will need a weekly closure above $ 81,000, according to Ryan Lee, Chief Analyst of Bitget Research,
The analyst told Coinlegraph:
“The key level to observe the weekly closure is a range of $ 81,000, which remains above that would indicate resilience, but we see a fall below $ 76,000, could invite more short -term sale pressure.”
Related: Bitcoin experimenting ‘Shokeout’, not the end of the 4 -year cycle: analysts
The analyst’s comments occur days before the next FOMC meeting scheduled for March 19. The markets currently have a 98% chance price for the Fed to maintain stable interest rates, according to the latest estimates of the Fedwatch tool of the CME group.
Source: Fedwatch by CME Group tool
“The market expects to a large extent that the Fed maintains stable rates, but any unexpected Dewkish signs could press Bitcoin and other risk assets,” added the analyst.
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