Bitcoin Whale Activity Before Fed Interest Rate Decision
A long-dormant Bitcoin whale has moved approximately $116 million worth of cryptocurrency after remaining inactive for 12 years, just ahead of the US Federal Reserve’s anticipated interest rate decision.
The unidentified whale emerged after over a decade to transfer 1,000 Bitcoin (BTC) — valued at around $116 million at current rates — which was originally purchased for about $847 per coin. At the time of acquisition, the BTC was worth about $847,000. The whale held onto it for more than ten years before moving it to new wallets on Wednesday, as reported by blockchain data platform Lookonchain.
This transfer of over $100 million occurred just before the Federal Open Market Committee (FOMC) meeting on Wednesday, a highly awaited event that could result in the first US interest rate cut of the year.
Market observers are describing the Fed’s decision as one of the most crucial of the year, with 96% of participants expecting a 25 basis point cut, according to the CME Group’s FedWatch tool. This figure has increased from 85% a month prior.
“Tomorrow is the most important FOMC of our lives …until the next one,” remarked Benjamin Cowen, founder and CEO of Into The Cryptoverse, in a post on X on Wednesday.
Despite the positive outlook, many cryptocurrency traders are preparing for a short-term downturn in the crypto market.
- Currently, over 57% of Bitcoin holders across all exchanges are positioned short, indicating they are betting on a decline in Bitcoin’s price, while only 42% remain long, as per blockchain data from CoinAnk.
In parallel, Bitcoin futures open interest has decreased by over $2 billion in a span of five days, reflecting an increased de-risking trend among futures traders ahead of the FOMC meeting, as reported on Monday.
However, traders on Binance, the world’s largest exchange, have been purchasing Bitcoin leading up to the critical interest rate decision.
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Binance recorded nine days of “constructive outflows” for Bitcoin in the lead-up to the FOMC meeting, a trend that seems to be a “major driver behind Bitcoin’s recent rise from $108k to over $115k,” according to insights from the onchain platform CryptoQuant.
Analysts at Bank of America anticipate at least two interest rate cuts from the Fed in 2025 — in September and November — while economists at Goldman Sachs are forecasting three 25 basis point cuts for this year, as reported on September 6.
