Bitcoin Whale Transfers $116 Million in BTC After 12 Years Ahead of Fed Decision
A Bitcoin whale that had remained inactive for more than a decade moved approximately 1,000 BTC, valued at around $116 million at current prices, just prior to the US Federal Reserve’s Federal Open Market Committee (FOMC) meeting. The whale originally acquired these coins at an average price of about $847 each, totaling roughly $847,000 at the time.
According to blockchain analytics platform Lookonchain, the transfer took place on Wednesday, marking the end of a 12-year dormancy period for this particular holder. The timing of the transaction is notable as it closely precedes the Fed’s highly anticipated interest rate decision, which many market participants expect to be the first cut of the year.
Market Anticipation Surrounding FOMC Meeting
The upcoming FOMC meeting has attracted significant attention, with 96% of traders forecasting a 25 basis point rate cut, an increase from 85% a month prior, as reflected by the CME Group’s FedWatch tool. Benjamin Cowen, founder and CEO of Into The Cryptoverse, emphasized the meeting’s importance, calling it “the most important FOMC of our lives… until the next one.”
Despite this optimism, many cryptocurrency traders are bracing for short-term volatility. Data from CoinAnk shows that over 57% of Bitcoin holders on exchanges are currently positioned short, betting on a price decline, while 42% remain long. Furthermore, Bitcoin futures open interest has decreased by more than $2 billion over the past five days, indicating increased risk aversion among futures traders ahead of the Fed announcement.
Binance Trading Activity and Price Movements
Contrasting the broader bearish sentiment, Binance—the world’s largest cryptocurrency exchange—has experienced nine consecutive days of constructive Bitcoin outflows, which onchain analytics provider CryptoQuant identifies as a significant factor behind Bitcoin’s recent price rebound from approximately $108,000 to over $115,000.
Analyst Projections on Interest Rate Cuts
Looking ahead, Bank of America analysts anticipate at least two interest rate cuts by the Fed in 2025, specifically in September and November. Meanwhile, economists at Goldman Sachs project three 25 basis point reductions within this year. These forecasts contribute to the market’s cautious but optimistic positioning.
FinOracleAI — Market View
The transfer of 1,000 BTC by a long-dormant whale immediately before the FOMC meeting highlights heightened market sensitivity to Federal Reserve policy decisions. The prevalent expectation of an interest rate cut is fostering mixed sentiment—while some traders are hedging for a short-term decline, Binance’s constructive outflows suggest underlying accumulation. Key risks include unexpected Fed policy shifts or macroeconomic developments that could trigger volatility.
Investors should monitor Bitcoin’s price reaction post-FOMC and shifts in futures open interest, which will provide further insight into market confidence and risk appetite.
Impact: neutral
