A Bitcoin whale has closed their $516 million short position, securing $9.4 million in profit in just 8 days. The Bitcoin whale closed their short position shortly after a lower-than-expected CPI reading provided an optimistic Bitcoin signal, due to diminishing concerns over monetary inflation. A major crypto investor, or whale, made nearly $10 million in profit after closing a 40x leveraged short position for 6,210 Bitcoin (BTC) — worth over $516 million — which effectively functions as a bet on the decline in Bitcoin's price. Leveraged positions use borrowed funds to increase the size of an investment, which can amplify both profits and losses, making leveraged trading riskier than regular investment positions.

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Bitcoin Whale Closes Short Positions

The savvy whale closed all their short positions within hours, making a profit of $9.46 million from the drop in Bitcoin, according to data from Hypurrscan. The whale initially opened the $368 million position at $84,043 and faced liquidation if the price of Bitcoin exceeded $85,592. The whale managed to profit despite having to add $5 million to their short position after a publicly formed team of traders started to "hunt" for the liquidation of their short position, which ultimately failed, as noted by Lookonchain in a March 17th X post.

Bitcoin Whale Makes $9.4 Million Profit

After closing their Bitcoin shorts, the whale began accumulating Ether (ETH) with their profits, acquiring more than 3,200 Ether for over $6.1 million at 7:31 AM UTC on March 18th, according to data from Etherscan. The profit-taking comes a day before the upcoming FOMC meeting on March 19th, which will give market participants more clues about the Federal Reserve's monetary policy path for 2025 and could potentially impact investor interest in risk assets like Bitcoin. Related: Bitcoin Experiences 'Shakeout', Not the End of 4-Year Cycle: Analysts

Bitcoin Could See Upside Potential as Inflation Worries Fade: Analyst

Inflation-related concerns are beginning to subside after the release of the U.S. Consumer Price Index (CPI) for February, which showed a lower-than-expected year-on-year increase of 2.8%, compared to the expected 2.9%. Diminishing inflation worries could be a positive sign for the upcoming FOMC meeting, according to Fumihiro Arasawa, co-founder and CEO of xWIN Research. The lower CPI reading could also be a positive sign for Bitcoin's trajectory, the CEO added:

"This suggests that inflationary pressure is gradually easing, which could influence the Federal Reserve's monetary policy decisions."

"Bitcoin's short-term price action will depend on whether it can hold the support level of $81,000. A sustained hold could stabilize sentiment, while a breakthrough could cause further corrections," Arasawa added. Related: The Biggest Risks of the Crypto Market in 2025: U.S. Recession, Circular Crypto-Economy

Bitcoin Target Rate Probabilities

Markets are currently pricing in a 99% chance that the Fed will keep rates stable, according to the latest estimates from the CME Group's FedWatch Tool. "The market largely expects the Fed to keep rates stable, but unexpected hawkish signals could put pressure on Bitcoin and other risk assets," Ryan Lee, head analyst at Bitget Research, told Cointelegraph. Disclaimer: This is not financial advice. Always consider conducting your own research and seek professional advice.