A crypto trader has opened over $260 million in short positions on Bitcoin, Ether, and Solana before the Federal Reserve meeting minutes release, anticipating potential volatility tied to U.S. monetary policy signals. The trader’s positions were visible on Hyperdash, with no long exposure and high leverage used in all three positions.

The largest short position was on Bitcoin, worth around $119 million, followed by a $106 million short on Ether and a $43 million short on Solana. The trader’s account was using more than 80% of available margin, indicating an aggressive, high-conviction trade rather than a hedge. Such large bets from “whales” often reflect expectations around major macro events.

The Federal Reserve is set to release minutes from its latest FOMC meeting, a key macro event for risk assets. Higher rates could drain liquidity from markets and strengthen the dollar, historically pressuring Bitcoin. Soft language could boost risk appetite. FOMC events trigger volatility in Bitcoin as traders react to rate changes and dollar strength.

With U.S. equity markets closing for the holidays, crypto markets may see amplified reactions to small shifts in tone. The whale’s large short positioning suggests downside risk outweighs upside heading into the Fed release. Bitcoin was trading near $87,900, Ether around $2,980, and Solana close to $124.60, awaiting the Fed’s FOMC minutes release.

Read more at Yahoo Finance: Wealthy trader places nine-figure bet hours before Fed minutes