A major crypto investor makes a significant bet against bitcoin, raising questions about the future of the crypto market.
Risky Bet Against Bitcoin
On March 15, 2025, a crypto whale opened a large short position on bitcoin, contributing to a significant drop in its value. This transaction utilized 40x leverage, multiplying potential gains but also exposing the investor to substantial losses. The critical threshold for this position is $85,592—if bitcoin's price exceeds this mark, the position will be automatically liquidated, leading to significant losses. The operation has already generated more than $2 million in unrealized profits, but maintaining it has cost over $200,000 in fees.
A Decisive Week for the Crypto Market
This bet is strategically timed before the Federal Open Market Committee (FOMC) meeting on March 19. Ryan Lee, chief analyst at Bitget Research, emphasized to Cointelegraph the need for bitcoin to maintain levels above $81,000 to avoid volatility ahead of FOMC. Current market assumptions indicate a 98% chance that the Federal Reserve will keep interest rates unchanged.
Macroeconomic Uncertainty
The current volatility of bitcoin is underpinned by macroeconomic uncertainty related to international tariffs. Investors are focusing on factors that may impact increasing interest in risky assets like bitcoin.
The crypto whale's bet creates potential upheavals in the bitcoin market, particularly amidst macroeconomic instability and pending Fed decisions.
