Bitcoin Leverage Nets Whale $9.4M Gain While Competitor Faces $1.38M Loss Amid Market Turbulence

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market underwent a notable transformation as a heavily leveraged short position was closed with impressive profits, while another trader suffered increasing losses. A well-known "whale" managed to earn $9.46 million by closing out a 40x short position involving 6,210 BTC, worth $516 million. This position was initiated at $84,043 per Bitcoin and was at risk of being liquidated if the price surpassed $85,592. The trader skillfully maneuvered through a coordinated "liquidation hunt" by other market participants, who briefly pushed Bitcoin’s price above $84,690, prompting the whale to inject an additional $5 million before ultimately closing the position successfully. Following this, the whale allocated $6.1 million of the profits into , purchasing 3,200 ETH.

This high-leverage short was closed during a period of heightened market turbulence, with Bitcoin hovering around $84,000 after the Federal Reserve opted to keep interest rates steady at 4.25%-4.50% during its March 2025 session. The central bank’s stance, along with a softer-than-anticipated February CPI of 2.8% year-over-year, eased inflation worries and fueled speculation about possible rate reductions in 2025. Market participants assigned a 99% chance to rates remaining unchanged, though some analysts cautioned that any unexpectedly hawkish moves could weigh on risk assets such as Bitcoin.

Conversely, another whale incurred a $1.38 million deficit on a 40x short involving 1,200 BTC, which turned negative as Bitcoin’s price climbed. This position, opened at a lower price, was forced to liquidate 166.66 BTC to meet margin calls. This scenario illustrates the double-edged sword of leveraged trading, where swift price swings can magnify both profits and losses. The trader’s difficulties highlighted the dangers of high leverage, especially in a market prone to sharp, coordinated moves.

Analysts observed that the interaction between large institutional trades and broader economic trends has made the trading landscape increasingly complex. Fumihiro Arasawa of xWIN Research pointed out that maintaining support at $81,000 would be crucial for market confidence. Meanwhile, Ryan Lee from Bitget Research noted that Bitcoin’s price movement remains closely linked to expectations around Federal Reserve policy, with any rally likely dependent on signals of rate cuts. The $73,000-$78,000 range was identified as a potential entry zone for long-term investors, and some experts forecast a possible rise to $200,000 within the next one to two years.

The closing of these leveraged shorts also ignited conversations about broader market dynamics. When a whale repurchases Bitcoin to exit a short, it can temporarily boost demand and push prices higher. This effect was especially pronounced in the 40x short case, where the whale’s actions were seen as a sign of confidence in Bitcoin’s short-term outlook. Nonetheless, analysts warned that such events do not ensure lasting price increases, as the cryptocurrency market remains vulnerable to macroeconomic shifts and regulatory changes. The relationship between Bitcoin and other coins like

was also highlighted, with the possibility that Bitcoin’s bullish momentum could spill over into other digital assets.

As the market processes these events, attention is focused on the Federal Reserve’s upcoming decisions and the growing role of institutions in the crypto space. The unwinding of leveraged whale positions, combined with macroeconomic signals, reflects the increasing complexity of trading strategies within the Bitcoin market. While short-term fluctuations continue, Bitcoin’s long-term direction will likely depend on the interplay between leveraged trading, economic conditions, and regulatory developments.