Bitcoin experienced a notable transition in ownership amidst the recent market downturn, while the broader cryptocurrency landscape remains clouded by uncertainty regarding the US Federal Reserve’s decision on interest rates in December.
Over 8% of the total Bitcoin (BTC) supply changed hands in the last week, leading analysts to describe this as one of the most remarkable on-chain occurrences in Bitcoin’s history. According to Joe Burnett, an analyst and director of Bitcoin Strategy at Semler Scientific, this shift reflects significant trading activity.
- “During previous notable Bitcoin supply changes, values hovered around $5,000 in March 2020 and roughly $3,500 in December 2018,” stated Burnett in a recent post. Both events preceded an accumulation phase culminating in new all-time highs.
Interestingly, nearly half of the current Bitcoin supply shift can be linked to a Coinbase Wallet Migration announced recently.
Bitcoin Market Changes
Source: Joe Burnett
Bitcoin Market on “Knife’s Edge” Ahead of Fed Decision
Investor sentiment concerning Bitcoin’s price hangs on a precarious edge, influenced by conflicting signals regarding potential interest rate cuts from the Federal Reserve in December, as per insights from Nic Puckrin, a digital asset analyst and co-founder of The Coin Bureau.
- “The upcoming interest rate decision will be crucial, determining whether we witness a Santa rally or a Santa dump,” warned Puckrin.
“As we neared December 10, I anticipate market unease will persist, and the Fed’s press conference will undoubtedly keep traders anxious.”
*Expectations for a rate cut have shifted significantly over the past week, now estimating an 82% probability of a 25 basis point reduction.
This adjustment in interest rate outlook has played a key role in Bitcoin’s recovery from $81,000 to $87,000.
For further details, take a look at the ongoing developments in the cryptocurrency sector.
