Bitcoin Whales Dump $2 Billion Before FOMC Meeting: What Next?
The post Bitcoin Whales Dump $2 Billion Before FOMC Meeting: What Next? appeared on BitcoinEthereumNews.com.
Bitcoin’s (BTC) price is at a crucial make-or-break point as the market anticipates Wednesday’s Federal Open Market Committee (FOMC) meeting. However, expectations for the event are no longer evenly split, despite being so just two days ago. If the meeting results in a lower basis point (bps) adjustment, historical trends suggest that BTC’s price may undergo a significant correction. A higher rate cut delivered by the Fed, led by Chair Jerome Powell, should boost Bitcoin’s price. This on-chain analysis explains why any potential gains in the latter scenario may be short-lived. Bitcoin Whales Sell the News Data from Glassnode shows that Bitcoin whales are selling off ahead of the highly anticipated FOMC meeting. For instance, on September 13, the number of addresses holding over $1 million worth of BTC was 108,163. Today, Bitcoin’s whale holdings have dropped to 106,104 BTC, signaling a sell-off of over 2,059 BTC valued at more than $2 billion. This “sell the news” behavior reflects growing caution among large holders, who may be preparing for potential volatility as the market awaits clues on future monetary policy. For instance, Lookonchain reported that a whale sold 500 BTC on Monday. A day before that, another Bitcoin whale deposited 119 BTC to Binance. This massive sell-off suggests that whales are positioning themselves defensively, anticipating possible short-term turbulence before, amid, and after the meeting. Bitcoin Addresses Holding $1 Million Minimum. Source: Glassnode According to the CME FedWatch tool, the chance of 50 bps is 69%, while that of 25 bps is 31%. For context, the tool measures the likelihood of an interest rate cut. In August, Fed Chair Powell hinted at a rate cut during the Jackson Hole Speech. The statement at that time gave Bitcoin’s price a brief push above $62,000. Over the weekend, the cryptocurrency jumped to $60,000 but…
Filed under: News - @ September 17, 2024 9:21 am