Bitcoin Whale Bets $368 Million on Decline Ahead of Wednesday’s Fed Meeting

• Whale bets $368 million on Bitcoin crash.
• 40x leverage increases risks and potential returns.
• Fed decisions could impact appetite for cryptos.

A major investor in the cryptocurrency market made a million-dollar bet on the devaluation of Bitcoin, opening a short position with 40x leverage , involving more than 4.442 BTC, totaling approximately US$368 million. This movement occurs at a time of uncertainty for financial markets, with attention focused on the upcoming Federal Open Market Committee (FOMC) meeting, which could impact global liquidity and appetite for risk assets.

The Bitcoin whale strategy suggests a bet on the market's selling pressure, as his position will be liquidated if the BTC price exceeds $85.592. On the other hand, the investor accumulates an unrealized profit of more than $2 million, despite having suffered losses of more than $200.000 in financing fees.

This type of leveraged trading, which allows borrowed capital to be used to increase market exposure, is common during periods of volatility. With the Federal Reserve’s interest rate decision looming, the global market is facing a moment of caution.

Last week, Wall Street's main indexes recorded significant losses, with the S&P 500 falling 2,3% and the Dow Jones falling 3%, reflecting investors' concerns about economic growth and the next steps in US monetary policy.

The next FOMC meeting, scheduled for March 19, will be closely watched by markets. Currently, the CME Group’s FedWatch tool indicates a 98% probability that the Fed will keep interest rates unchanged. However, any sign of a more restrictive stance could further pressure Bitcoin and other assets considered to be riskier.

Ryan Lee, chief analyst at Bitget Research, highlighted the importance of BTC’s technical levels:

“The key level to watch for the weekly close is the $81.000 range; holding above this would be a sign of resilience, but if we see a dip below $76.000 it could invite more short-term selling pressure.”

This intersection between macroeconomic events and Bitcoin’s behavior underscores the growing interdependence between traditional markets and the cryptocurrency sector. BTC’s performance in the coming days could provide clues about the market’s direction amid monetary and economic uncertainty.