- The massive $400M short position held by an important investor increases market volatility while traders monitor potential asset liquidation.
- At 32% the Crypto Fear & Greed Index reflects cautious sentiment, as equity declines push Bitcoin’s role as a macro hedge.
- Investors remain focused on the upcoming FOMC meeting which shows vulnerabilities between inflation factors and trade barrier concerns may prevent an interest rate change.
Bitcoin remains under pressure as market volatility intensifies following a significant short position by a major investor. Over the weekend, a large Bitcoin holder opened a $400 million short position at an average entry price of $84,000, with a liquidation threshold near $86,000.
This highly leveraged 40x position drew attention as traders attempted to force a liquidation, which would have required only a 2.5% price increase. Despite these efforts, the position remains active, accumulating nearly $400,000 in funding fees.
Crypto Fear Rises as Bitcoin Holds Hedge Appeal
Amid heightened volatility, the Crypto Fear & Greed Index currently reads 32% (Fear), reflecting ongoing market caution. A broader risk-off sentiment has emerged, influenced by declines in the equity markets. This has reinforced Bitcoin’s role as a macro hedge, with some traders using options to mitigate risk.
Bitcoin Fear and Greed Index is 32 ~ Fear
— Bitcoin Fear and Greed Index (@BitcoinFear) March 17, 2025
Current price: $83,583 pic.twitter.com/0SBzBeFsM7
On Friday, aggressive purchases of BTC-17MAR25-80k-P options contracts signaled anticipation of further weekend instability. Meanwhile, U.S. equity futures opened lower amid renewed recession fears.
Treasury Secretary Scott Bessent warned a downturn is still possible, echoing former President Trump’s concerns and adding to market uncertainty. Investors now await U.S. Retail Sales data for insights, with January’s 0.9% drop raising questions about consumer spending trends.
Bitcoin Steady Above $80K as Fed Looms
The Federal Reserve’s stance remains a key focus as traders await Wednesday’s FOMC meeting. Current inflation risks alongside tariff uncertainties will cause policy makers to stay firm with their decisions while markets remain watchful for any signals regarding upcoming changes.
Bitcoin has slightly decreased to $83,349.01 while showing a 0.1% reduction from $83,424.82 after a 1.0% decrease. The market demonstrates temporary stability as selling activities decrease during this time. Despite recent volatility, including a $400 million short position, Bitcoin remains resilient above $80K, standing strong amid traditional market struggles and shifting risk sentiment.
