Bitcoin Zilla closed its short position of over $5 billion this week, betting on a decline in Bitcoin prices ahead of the much-anticipated Federal Open Market Committee (FOMC) meeting.
The large crypto investor, or whales, have made nearly $10 million after closing their leveraged short positions of 40 times the BTC (BTC).
In a leveraged position, you use the money you borrow to increase the size of your investment. This increases the magnitude of both profit and losses, and leveraged transactions are more risky compared to regular investment positions.
Bitcoin jelly closed position of shirt. Source: Hypurrscan
The savvy whale closed all short positions within hours, earning $9.46 million from the decline in Bitcoin, Hypurrscan data shows.
The whales faced liquidation, opening their first $368 million position at $84,043 if Bitcoin price exceeded $85,592.
After the X-Post on March 17th, when he began “hunting” the liquidation of his short position, which he ultimately failed, a team of traders began “hunting” his short position, the whale managed to make a profit despite having to add $5 million to his short.
Bitcoin Zilla made a profit of $9.4 million. Source: Hypurrscan
After closing the Bitcoin shorts, the whales acquired over 3,200 ether for over $6.1 million at 7:31am on March 18th, and began acquiring over 3,200 ether on March 18th.
The benefit comes one day before the FOMC meeting, which will be held on March 19th. This could provide market participants with more clues about the 2025 Federal Reserve monetary policy path, which could affect investors’ desires for risky assets such as Bitcoin.
Related: Bitcoin experiencing “shakeout” not the end of the 4-year cycle: Analyst
Bitcoin may turn upside down on mitigating inflation concerns: analysts
Inflation-related concerns have begun to be easier following the release of the US Consumer Price Index (CPI) in February, revealing an increase of 2.8% ahead of expectations, compared to the expected 2.9%.
Mitigating inflation-related concerns could be a positive indication for upcoming FOMC meetings, according to Fumihiro Arasawa, co-founder and CEO of Xwin Research.
The CPI reading could also be a positive indication of Bitcoin’s trajectory, the CEO told Cointelegraph, adding:
“This suggests that inflationary pressures are gradually eased and could affect the Federal Reserve monetary policy decisions.”
“The short-term price measures for Bitcoin will depend on whether they can hold a support level of $81,000. While sustained holdings can stabilize emotions, breakdowns can cause further corrections,” Arasawa added.
Related: The biggest risks of the crypto market in 2025: US recession, circular crypto economy
Bitcoin target rate probability. Source: CME Group’s FedWatch Tool
According to the latest estimates from CME Group’s FedWatch tool, the market is currently priced at a 99% chance that the Fed will stabilize interest rates.
“The market primarily expects the Fed to be stable, but the unexpected Hawkish signal could put pressure on Bitcoin and other risky assets,” Bitget Research chief analyst Ryan Lee told Cointelegraph.
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