Before the U.S. interest rate decision on September 18, Bitcoin may face downward pressure, and it’s possible that it will fall below the $50,000 mark this weekend. If the price drops below this important psychological level, it could make bearish trends stronger in September, which has generally been a bad month for the cryptocurrency.
Recent changes in the positions of big holders, or “whales,” show that more people are selling. One whale recently sold 100 BTC, which is worth more than $5.3 million, making more than $206,000.
A post from September 7 by the on-chain analytics company Lookonchain says that addresses bought a total of 402,000 BTC, which is worth over $21 billion. These addresses were probably just trying to break even.
“836,000 addresses bought ~402,800 $BTC ($21B) at a price between $51,113 and $54,303. These addresses are likely to sell near the breakeven.”
Bitcoin Faces Market Uncertainty
Because whales have a lot of money, the way they trade often changes how the market feels. Arthur Hayes, the former CEO of BitMEX, said that the price of Bitcoin could drop below $50,000 this weekend.
“BTC is heavy, I’m gunning for sub $50k this weekend. I took a cheeky short. Pray for my soul, for I am a degen.”
This comes after the price of Bitcoin fell 1.4% to $54,340 as of September 7, 9:26 am UTC. The value of the coin has dropped almost 8% in the past week.
Bitfinex and Lookonchain experts are worried that prices will go down even more before they might go up again. More worry in the market was caused when Galaxy Digital sent $78.5 million worth of Bitcoin to Coinbase Prime on September 7.
“We expect BTC and the equity markets to face downward pressure leading up to the Fed’s official rate cut announcement. Once the rate cut is confirmed after the September FOMC meeting, we may see a short- to mid-term boost in risk assets.”
The expected U.S. interest rate cut could change how investors feel. Alvin Kan, COO of Bitget Wallet, said that Bitcoin might be under more stress until September 18, when the Federal Reserve makes its choice.
“Given the current market volatility, there’s a possibility of BTC experiencing liquidity issues, which could cause sharp, temporary price drops. At the moment, there’s about a 40% chance of BTC dipping below $50,000.”
There is a 70% chance that the rate will be cut by 25 basis points and a 30% chance that it will be cut by 50 basis points, according to the CME FedWatch tool.
