12-year BTC whale moves 1K BTC ahead of Fed rate cut

A Bitcoin whale that has been dormant for 12 years has moved 1,000 BTC valued at around $116 million merely hours before the US Federal Reserve’s highly anticipated interest rate decision. The activity marks the first movement from the address in 12 years, according to blockchain tracking platform Lookonchain.

According to crypto transactions monitor Lookonchain, the address 1NzHXRDizgEGaJZfBG46k66QXpRzDrtpZo had held its Bitcoin since 2013. At that time, the whale acquired the coins for an average of about $847 each, paying roughly $847,000 in total. At current market prices, the same stack is worth about 137 times more.

Blockchain explorer data shows that the whale executed four transactions between late Tuesday night and early Wednesday morning, dispersing the 1,000 BTC to four fresh addresses.

Bitcoin whale transfers holdings to four new addresses 

The movement began on Tuesday at 23:37 UTC, when they transferred 99 BTC worth roughly $11.5 million to a new address bc1q0…hla9d. Ten minutes later, another 500 BTC transfer was logged, carrying an approximate value of $58.1 million.

At the stroke of midnight, the account initiated a 400 BTC transfer valued at $46.5 million. Fees for the larger transfers were minimal, with the 500 BTC and 400 BTC moves each costing just 470 satoshis, about 55 cents at current rates, while the 99 BTC transfer incurred less than $2.20 in network fees.

Per market analysts, the Bitcoin whale is preparing for the Federal Open Market Committee (FOMC) interest rate decision later today. According to the CME Group’s FedWatch tool, 96% of traders anticipate a 25 basis point cut. The expectation has been high all along, but it has grown from 85% just one month earlier.

Economists are divided on how many cuts could follow. Bank of America analysts see the Fed making two reductions, one in September and another in November, while Goldman Sachs projects three 25 basis point cuts before year-end.

An analyst using the pseudonym The Count of Monte Crypto on X, believes there is “an 80% chance that the Fed will cut interest rates three times this year.” He also mentioned the reductions could take place during the central bank’s upcoming meetings scheduled for September 17, October 29, and December 10.

According to the commentator, markets are already pricing in the possibility of several cuts because both gold and altcoins are rising. He quoted his regular video updates, saying: “We may experience an altcoin season in October and November.”

Traders prepare for short-term volatility

Despite optimism around easing monetary conditions, most crypto market participants appear to be hedging against more price downturns. Blockchain data platform CoinAnk reports that more than 57% of Bitcoin traders across exchanges have shorted the asset, compared with 42% taking long positions.

According to Coinglass data, over 100,000 traders have been liquidated in the last 24 hours, with the amount totalling $214 million. Long positions took the biggest part of the red cake with $121 million, while those who shorted coin values lost about $93 million.

Bitcoin itself has been in a consolidation phase ahead of the Fed’s meeting, rebounding from $111,000 support last Tuesday, climbing to $116,800 over the weekend. Bulls briefly pushed the asset above $117,200 earlier today, marking a four-week high, before a pullback to $116,000.

Open interest in Bitcoin futures contracts has fallen by over $2 billion in the past five days, which could mean traders are reducing their exposure ahead of the Fed’s announcement.

Get seen where it counts. Advertise in Cryptopolitan Research and reach crypto’s sharpest investors and builders.