Crypto Whale Closes $516 Million Bitcoin Short Ahead of Key FOMC Meeting
A major crypto investor has closed short positions worth over $516 million in Bitcoin, betting on a price decline ahead of this week’s Federal Open Market Committee (FOMC) meeting.
The whale earned nearly $10 million in profit after closing a 40x leveraged position of 6,210 BTC, despite facing attempts to trigger a liquidation. The investor initially opened the position at $84,043 and managed to avoid liquidation even after adding $5 million to the short.
The investor used the gains to acquire over 3,200 ETH for $6.1 million on March 18. This move comes as easing inflation concerns, reflected in a lower-than-expected US Consumer Price Index (CPI), could influence the Federal Reserve’s decisions on monetary policy during the FOMC meeting.
READ MORE: March Sees Major Outflows for U.S. Bitcoin and Ethereum ETFs as Bearish Sentiment Grows
The upcoming policy decisions are expected to shape investor sentiment and could impact risk assets like Bitcoin.
Bitcoin’s near-term price action will depend on its ability to maintain support at $81,000. A sustained hold could stabilize sentiment, while a drop below might lead to further corrections.
If inflationary pressures continue to ease, it could potentially provide Bitcoin with some bullish momentum, although much will depend on the Federal Reserve’s stance in response to the broader economic landscape.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
