Major Bitcoin holders mobilize, transfer significant amounts of currency prior to the upcoming Federal Reserve's interest rate decision
In a significant development in the cryptocurrency world, a Satoshi-era Bitcoin whale, inactive for over a decade, has stirred the market by transferring 1,000 BTC on Wednesday. This transfer, worth approximately $117 million at the current price of $117,000, has caught the attention of experts and analysts.
The transferred Bitcoin was not the first move by this dormant whale. Last week, another portion of its $50 million holdings was moved to new wallets, indicating a potential shift in strategy. This transfer was made following a Hyperliquid deposit, a trend that was also seen in a separate transfer of 1,176 BTC to Hyperliquid across two transfers on September 14.
However, it is unclear whether these whales are planning to sell their holdings in the near future. Recent data shows that major Bitcoin holders have sold over 115,000 BTC worth about $12.7 billion in the past month, the highest since July 2022. This suggests institutional caution, but there is no specific information about decade-long dormant whales selling imminently.
As the U.S. Federal Reserve's rate cut decision is scheduled for September 17, Bitcoin whales are becoming increasingly active. The Fed Chair's tone in today's rate cut meeting at 2pm ET is being watched closely by experts. According to CME's FedWatch tool, there is a 100% possibility of a rate cut, with the odds of a 25 basis point rate cut hovering around 94%.
Investors are favoring Bitcoin as the safer bet ahead of the Fed decision. Illia Otychenko, lead analyst at CEX.IO, stated that the resurgence of Bitcoin ETF flows indicates a more cautious mood among investors. Bitwise's Monday report also shows that the accumulation from exchange-traded funds exceeds the new supply.
On prediction market Myriad, launched by Decrypt's parent company DASTAN, users place a 91.8% chance on a 25bps rate cut and a 4.7% chance on a 50bps decrease. This suggests a general consensus among investors that a smaller rate cut is more likely.
Despite the potential sell-off by dormant whales and the upcoming Fed decision, institutional demand for Bitcoin remains high. This is indicated by last week's ETF flows, which show strong demand for the cryptocurrency. More dormant Bitcoin wallets have started to become active as Bitcoin holds above the psychological level of $100,000.
In conclusion, the cryptocurrency market is buzzing with activity as a decade-old Bitcoin whale stirs and the Fed rate cut decision approaches. While it remains uncertain whether the whale is planning to sell its holdings, institutional demand for Bitcoin remains strong, indicating a positive outlook for the cryptocurrency.
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