A Bitcoin whale is wagering hundreds of millions on Bitcoin’s short-term decline, ahead of a week filled with key economic reports that may significantly impact Bitcoin’s price trajectory and risk appetite among investors.

A large crypto investor, or whale, has opened a 40x leveraged short position for over 4,442 Bitcoin (BTC) worth over $368 million, which functions as a de facto bet on Bitcoin’s price fall.

Leveraged positions use borrowed money to increase the size of an investment, which can boost the size of both gains and losses, making leveraged trading riskier compared to regular investment positions.

The Bitcoin whale opened the $368 million position at $84,043 and faces liquidation if Bitcoin’s price surpasses $85,592.

Source: Hypurrscan

The investor has generated over $2 million in unrealized profit, however, he has an over $200,000 loss on his position’s funding fees, Hypurrscan data shows.

Despite the heightened risk of leveraged trading, some crypto investors are making significant profits with this strategy. Earlier in March, a savvy trader gained $68 million on a 50x leveraged short position, banking on Ether’s (ETH) 11% price decline.

The leveraged bet comes ahead of a week of numerous significant macroeconomic releases, including the upcoming Federal Open Market Committee (FOMC) meeting on March 19, which may impact investor appetite for risk assets such as Bitcoin.

Related: Bitcoin’s next catalyst: End of $36T US debt ceiling suspension

Bitcoin needs weekly close above $81k to avoid pre-FOMC downside: analysts

Bitcoin price continues to risk significant downside volatility due to growing macroeconomic uncertainty around global trade tariffs.

To avoid downside volatility ahead of the FOMC meeting, Bitcoin will need a weekly close above $81,000, according to Ryan Lee, chief analyst at Bitget Research,

The analyst told Cointelegraph:

“The key level to watch for the weekly close is $81,000 range, holding above that would signal resilience, but if we see a drop below $76,000, it could invite more short-term selling pressure.”

Related: Bitcoin experiencing ‘shakeout,’ not end of 4-year cycle: Analysts

The analyst’s comments come days ahead of the next FOMC meeting scheduled for March 19. Markets are currently pricing in a 98% chance that the Fed will keep interest rates steady, according to the latest estimates of the CME Group’s FedWatch tool.

Source: CME Group’s FedWatch tool

“The market largely expects the Fed to hold rates steady, but any unexpected hawkish signals could put pressure on Bitcoin and other risk assets,” added the analyst.

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