Bitcoin’s price fluctuated to $83,600 today and is volatile with enormous trading by “whales” or huge investors. One whale has just established a short position of value of $450 million with 40x leverage, betting on the likelihood of the price of Bitcoin falling.
Whale Activity and Market Impact
On 17th March, a well-known Bitcoin whale on Hyperliquid started a “man-hunt” among traders when he shorted around $450 million in Bitcoin before the Federal Open Market Committee (FOMC) meeting. The trader opened the position at $84,043 per Bitcoin, setting the liquidation price at $85,592.
When other traders grouped together to close this whale’s position, Bitcoin’s price momentarily rose to $84,690, prompting the whale to inject more collateral to avoid liquidation. According to Hypurrscan.io data, the whale has already made more than $2 million in unrealized gains, but also colossal funding fees of more than $200,000.
Market Corrections and Economic Factors
Bitcoin‘s recent price drops also reflect broader market corrections. The cryptocurrency recently fell to $83,607, reflecting a whopping 25% drop from its record high of $109,200. Factors contributing to this drop include President Trump’s fresh tariffs, new investor panic selling, and institutional sell-offs. In the past five weeks, institutional investors withdrew close to $5.4 billion from the market.
Despite such compromises, the introduction of the Strategic Bitcoin Reserve, which removes around 200,000 BTC from supply, can be easily embraced by long-term sentiment. The reserve also has the potential to make Bitcoin more legitimate as a non-sovereign store of value and thus can potentially discourage institutional investors from remaining net sellers.
Current Market Outlook
Bitcoin stands at around $84,000 with people wondering what is next. The experts opine that traders must remain vigilant regarding risk management and diversification as much as the current uncertainty cares. Statistics indicate that corrections of more than 25% are atypical in bull trends, and historical corrections in 2021 and 2017 averaged around 37%.
Investors need to employ strategies such as dollar-cost averaging (DCA) that can mitigate risks during such corrections. Diversifying across different asset classes remains crucial for maintaining a balanced portfolio.
