A high-stakes Bitcoin investor is making a bold move, wagering $368 million on a short-term price drop for BTC just days before a key Federal Reserve meeting that could shake up the crypto market.

This whale has opened a massive 40x leveraged short position for 4,442 BTC at $84,043, effectively betting that Bitcoin’s price will fall. With leverage amplifying both gains and losses, the trader faces liquidation if BTC surpasses $85,592. So far, the bet has yielded over $2 million in unrealized profits, despite a $200,000 funding fee loss, according to Hypurrscan data.

Leveraged trading remains a high-risk, high-reward strategy. Earlier in March, a trader secured a staggering $68 million profit by correctly anticipating an 11% decline in Ether’s price using a 50x leveraged position.

This latest bet comes at a crucial time for Bitcoin, as the Federal Open Market Committee (FOMC) is set to meet on March 19. The outcome could significantly impact investor sentiment toward risk assets like BTC. Markets currently see a 98% probability that the Fed will maintain interest rates, but any unexpected hawkish signals could trigger volatility.

According to Ryan Lee, chief analyst at Bitget Research, Bitcoin must close above $81,000 this week to maintain stability. “Holding above that level signals resilience, but a drop below $76,000 could invite more selling pressure,” he warned.

With macroeconomic uncertainty rising, all eyes are on the Fed’s decision and how it could dictate Bitcoin’s next big move.