A long-slumbering Bitcoin whale moved approximately $116 million worth of the cryptocurrency after 12 years, just prior to the US Federal Reserve’s highly anticipated interest rate decision.
The unidentified whale emerged from dormancy after 12 years to transfer 1,000 Bitcoin (BTC) — valued at around $116 million based on current prices — which were originally purchased for about $847 per coin. The BTC was valued at around $847,000 at that time, which the whale held for over a decade before transferring it to new wallets on Wednesday, as recorded by blockchain data platform Lookonchain.
The transfer exceeding $100 million took place right before Wednesday’s scheduled Federal Open Market Committee (FOMC) meeting, an event eagerly awaited as it may result in the first US interest rate cut of the year.
Related: Standard Chartered venture arm aims to raise $250M for digital asset fund: Report
Crypto traders prepare for market fluctuations ahead of FOMC meeting
Market analysts are labeling 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 estimate had increased from 85% a month prior.
“Tomorrow is the most significant FOMC of our lives …until the next one,” stated Benjamin Cowen, founder and CEO of Into The Cryptoverse, in a Wednesday X post.
Related: Nasdaq-listed Helius announces $500M funding for Solana treasury
Despite a generally positive outlook, most cryptocurrency traders are bracing for a short-term drop in the crypto market.
Currently, over 57% of Bitcoin holders across all exchanges are positioned short, indicating a bet on Bitcoin’s price decline, while only 42% are long, as per blockchain data from CoinAnk.
Simultaneously, Bitcoin futures open interest has decreased by over $2 billion in five days, suggesting further de-risking among futures traders ahead of the FOMC meeting, as reported by Cointelegraph on Monday.
Nevertheless, traders on the largest exchange, Binance, have been purchasing Bitcoin in anticipation of the critical interest rate decision.
Binance experienced nine consecutive days of “constructive outflows” for Bitcoin leading up to the FOMC meeting, a trend that seems to be a “major factor behind Bitcoin’s recent rise from $108k to over $115k,” according to insights from onchain platform CryptoQuant.
Analysts from Bank of America predict at least two interest rate reductions by the Fed in 2025 — in September and November — while Goldman Sachs economists anticipate three cuts of 25 basis points this year, as reported by Cointelegraph on Sept. 6.
Magazine: Bitcoin dominance is expected to decline in 2025: Benjamin Cowen, X Hall of Flame
