In a notable development within the cryptocurrency market, two dormant Bitcoin whales have significantly altered their holdings in the past three days by transferring more than 2,000 BTC. The renewed activity from these long-inactive wallets coincides with anticipation around the U.S. Federal Reserve’s decision regarding interest rates, scheduled for today at 2 PM ET.
An on-chain analytics platform, Arkham, revealed that a Satoshi-era whale emerged from dormancy this Wednesday, moving 1,000 BTC to four new wallets. This particular whale had acquired the Bitcoin in multiple transactions back in 2013, when the cryptocurrency was valued at approximately $843. Now, with Bitcoin trading around $117,000, this stack of coins has ballooned in value to a remarkable $117 million.
Notably, another whale also made headlines on September 14 by transferring 1,176 BTC to Hyperliquid across two separate transactions. This action appears to signal a potential intention to sell, as this particular wallet had previously exchanged a staggering $4 billion worth of Bitcoin for Ethereum following another Hyperliquid deposit. Additionally, a 13-year inactive whale was reported to have shifted part of its holdings worth $50 million to new wallets just last Thursday.
Despite this apparent selling activity among older Bitcoin holders, institutional demand for the cryptocurrency remains robust. Recent reports emphasize that the accumulation of Bitcoin via exchange-traded funds (ETFs) is now significantly outpacing new supply. Illia Otychenko, the lead analyst at CEX.IO, highlighted that the inflow of Bitcoin through ETFs reflects a cautious sentiment among investors, positioning Bitcoin as a “safer bet” in light of the impending Fed decision.
As the market awaits the Fed’s decision, analysts are closely monitoring the likelihood of a rate cut. The CME’s FedWatch tool indicates a 100% probability of a rate cut, with a 94% chance for a 25 basis point reduction. Similarly, prediction markets estimate a 91.8% probability for this quarter-point cut and a mere 4.7% probability for a more significant 50 basis point decrease.
With expectations pointing towards a rate cut, the financial community is attentive to the tone of Federal Reserve Chair Jerome Powell during his announcement, as this could significantly influence market sentiment and Bitcoin’s trajectory in the coming days.
