A Bitcoin whale, inactive for 12 years, has moved approximately $116 million worth of the cryptocurrency just before a significant interest rate decision by the US Federal Reserve.
This unknown whale reactivated after 12 years to transfer 1,000 Bitcoin (BTC)—valued at roughly $116 million today—originally acquired for about $847 per coin. The total value at the time of purchase was approximately $847,000, which the whale held for over a decade before moving it to new wallets on Wednesday, according to the blockchain data platform Lookonchain.
The transfer exceeding $100 million occurred just prior to the anticipated Federal Open Market Committee (FOMC) meeting, which may announce the first interest rate cut of the year.
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Crypto traders prepare for market fluctuations ahead of the FOMC meeting
Analysts view the Fed’s decision as one of the year’s most crucial moments, with 96% of participants expecting a 25 basis point cut, according to the CME Group’s FedWatch tool. This estimate has risen from 85% over the past month.
“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 Wednesday X post.
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Despite a positive outlook, many cryptocurrency traders are positioning for a potential short-term decline in the market.
Currently, over 57% of Bitcoin holders across all exchanges are short, indicating their bets on a decline in Bitcoin’s price, while only 42% are long, per data from CoinAnk.
Additionally, Bitcoin futures open interest has decreased by over $2 billion in five days, signaling increased caution among futures traders ahead of the FOMC meeting, as reported by Cointelegraph on Monday.
Nevertheless, traders on the top exchange, Binance, are purchasing Bitcoin in anticipation of the interest rate decision.
Binance has recorded nine consecutive days of “constructive outflows” for Bitcoin leading up to the FOMC meeting, a trend considered a “major driver behind Bitcoin’s recent increase from $108k to +$115k,” as noted by onchain insights platform CryptoQuant.
Analysts at Bank of America anticipate at least two Fed interest rate cuts in 2025—one in September and another in November—while Goldman Sachs economists predict three 25 BPS cuts for this year, as reported by Cointelegraph on September 6.
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