An anonymous investor just placed a sizeable short position on Bitcoin, only hours before today’s interest rate announcement.
According to a post from AltcoinGordon on Twitter, a mysterious cryptocurrency whale set up a $69 million bet that Bitcoin will go down. To make the stakes even higher, the short position was put with 40x leverage—positioning the investor for high profits, or sizeable losses depending on how Bitcoin performs.
If Bitcoin reaches $103,470, the investor’s short position will be liquidated—meaning they’ll lose the entire bet. Since the trade was placed with 40x leverage, even small price movements could trigger liquidation quickly. If Bitcoin rises instead of falling, the trader could face massive losses, making this a high-risk, high-reward gamble in an already volatile market.
A High-Stakes Bet or Insider Knowledge?
As soon as the report was posted on Twitter, the crypto community began to speculate if this anonymous investor could know something we don’t. The timing of the bet also raises suspicion, going live only hours before the Federal Reserve announces its new interest rate policy.
Interest rate decisions are known for making crypto markets volatile. Any crypto degen who was active during the years after the pandemic knows how much an interest rate rise can affect assets like Bitcoin.
However, today’s decision does not promise to shake financial markets, at least not by a lot. Given the uncertainty surrounding the U.S. economy and early signs of inflationary spikes—nearly all forecasts predict neither a rate slash nor increase—but rather a continued pause, maintaining the current interest rate levels.
As of right now, Bitcoin trades at the $97,000 zone, boasting a 3.32% increase over the last 24 hours. We’ll get back to you guys with a story if the price changes radically over the day.
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