anonymous investor sets $ 368 million on falling Bitcoin course-interest decision of the Fed could increase market pressure

<P> <strong> anonymous investor sets $ 368 million on falling Bitcoin course-interest decision of the Fed could increase market pressure </strong> </p>

Bitcoin-Whale sets a drop in the course: Risk and opportunities of a short position

An anonymous investor competes with an enormous short position of $ 368 million (338 million euros) to a decline in the Bitcoin course (BTC). It uses a significant lever of 40x, which makes its position extremely risky. This speculation takes place just a few days before a decisive session of the US Central Bank, the decisions of which could put the Bitcoin course under pressure.

Speculation on the decline in the Bitcoin course

In a short position, the dealer borrowed cryptocurrencies, sells them immediately and plans to buy them back later at a lower price. If the course falls, it can buy the bitcoins back more cheaply and cut in the difference. However, if the Bitcoin course increases, the dealer is forced to buy the coins back at a higher price, which leads to losses.

The investor said has opened a short position over 4,442 BTC at a price of $ 84,043. With the use of an extreme lever of 40x, a small price movement can already result in massive profits or losses. If Bitcoin increases over $ 85,592, the position is liquidated and the investor loses its use.

Although the investor currently has an unrealized profit of over $ 2 million, he has already posted more than $ 200,000 in financing costs. This strategy is extremely risky, because an increase in the course by only 1.8 % can destroy the entire use. In the opposite scenario, the investor could achieve significant profits by 1.8 % in a drop in the price.

volatility through interest decisions

The position of the Bitcoin whale is opened in the run-up to the meeting of the Federal Open Market Committee (FOMC) on March 19, in which the interest rate policy of the US Federal Reserve is analyzed. Historically, such sessions have often led to increased volatility on the cryptoma market.

ryan lee, chief analyst at Bitget Research, emphasizes the importance of a certain price level:

"The most important zone to keep an eye on is $ 81,000. If BTC stays above it, the resistance shows. However, if the price falls below $ 76,000, the additional sales pressure could trigger."

Data from the CME Group’s Fedwatch tools indicate that the market assumes a probability of 98 % that the interest rate remains unchanged. Nevertheless, analysts warn that aggressive statements on the part of the Federal Reserve could put pressure on Bitcoin and other risky systems.

FAZIT

The investment in short positions on Bitcoin is associated with considerable risks, but also offers the chance of high profits. The current market conditions, including the upcoming interest rate decision of the US Federal Reserve, could be crucial for the future development of the Bitcoin course. Investors and dealers should observe the situation carefully and be aware of the risks that are associated with this form of speculation.