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Whales unload $2B Bitcoin ahead of crucial FOMC meeting

Whales unload $2B Bitcoin ahead of crucial FOMC meeting

GrafaGrafa2024/09/17 11:15
By:Liezl Gambe

Bitcoin (CRYPTO:BTC) whales have offloaded over $2 billion in BTC ahead of the upcoming Federal Open Market Committee (FOMC) meeting, signaling caution among large holders as market expectations shift toward a potential rate cut.

On-chain data from Glassnode reveals a significant reduction in whale holdings, with addresses holding more than $1 million in BTC decreasing from 108,163 to 106,104, indicating a sell-off of over 2,059 BTC.

The potential outcome of the FOMC meeting is driving the market's uncertainty.

The CME FedWatch tool shows a 69% probability of a 50 basis point (bps) rate cut and a 31% chance of a 25 bps cut.

Federal Reserve Chair Jerome Powell hinted at possible rate cuts during his Jackson Hole speech in August, which briefly pushed Bitcoin above $62,000.

However, Bitcoin has since dipped below the $60,000 mark and is currently trading at $58,646.

Amid this anticipation, analysts like Markus Thielen, head of research at 10xResearch, caution that any boost from a rate cut might not be sustainable.

Thielen noted, "Historically, Bitcoin’s performance following rate cuts has been mixed; for example, after the 2019 rate cut, Bitcoin’s initial gains were short-lived, and the price dropped by 30% a few months later."

Technical indicators further suggest bearish pressure on Bitcoin.

The cryptocurrency is struggling to maintain momentum above the 20-day Exponential Moving Average (EMA) and remains below the 50 EMA, reinforcing a short-term bearish trend.

The Relative Strength Index (RSI), a momentum indicator, also suggests potential downside risks if it fails to move above the neutral line.

If Bitcoin's price does not hold current levels, it could decline to $56,224 or even $52,975 after the FOMC meeting.

However, if whales start accumulating again, there could be a recovery to $64,373, potentially setting the stage for a rally in the fourth quarter.

Analysts warn that timing will be key, as unexpected events could still influence market dynamics.

At the time of reporting, the Bitcoin (BTC) price was $58,971.84.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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