Table of Contents
A high-stakes trader is making a bold and risky bet that Bitcoin will take a sharp dive ahead of the upcoming U.S. Federal Reserve rate decision on March 19. But “bet” might be an understatement—this crypto whale has gone all in with a massive $368 million short position, leveraged 40 times. If Bitcoin defies expectations and pumps instead, this whale could be wiped out in spectacular fashion.
How Does This Whale’s Trade Work?
A short position is essentially a bet that an asset’s price will go down. The trader borrows Bitcoin, sells it immediately, and aims to buy it back later at a lower price, pocketing the difference as profit. Leverage magnifies this effect, meaning gains (or losses) are amplified significantly.
This particular whale opened their short position at $84,043 and faces liquidation if BTC crosses $85,942. That means if Bitcoin rises just 2.3%, their entire $368 million trade could go up in flames.
At the time of writing, the whale is up $4.3 million, but the crypto market is unpredictable—especially with macroeconomic factors at play.
A Hedge Bet on MELANIA?
In an unexpected twist, this whale isn’t just betting against Bitcoin. They’ve also opened a long position on MELANIA—yes, the meme coin inspired by Melania Trump.
This secondary position is significantly smaller, valued at $2.384 million, and so far has netted them a modest $36,000 profit. A risky hedge or just another wild gamble? Only time will tell.
Will Bitcoin Hold Strong?
Despite the whale’s bearish bet, Bitcoin has shown resilience above $81,000, which Bitget Research’s Ryan Lee calls a key support level. He suggests that Bitcoin holding this price ahead of the Federal Reserve’s rate decision could indicate market strength.
“The critical level for the week is $81,000. Staying above this level would signal resilience, whereas dropping below $76,000 could invite further selling pressure.”
Even though the market sees only a 2% chance of a rate cut, traders are speculating that the Fed may soon halt its Quantitative Tightening (QT) program—a move that could indirectly boost liquidity and benefit risk assets like Bitcoin.
The Countdown to Fed Day Begins…
As the March 19 decision approaches, traders are watching closely. If Bitcoin drops, this whale could walk away with an enormous profit. But if the market rallies unexpectedly, this could be one of the most expensive mistakes in crypto history. Buckle up!
