Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Bitcoin veterans sell over $100 million in BTC following a hawkish Federal Reserve that dampens expectations for interest rate reductions.
OGs sell as Fed’s hawkish stance on rates pressures crypto and other risk assets.
Bitcoin OGs dump their holdings. (Creative Commons, modified by CoinDesk)
What to know:
- Bitcoin OGs liquidated over 1,650 BTC valued at $117M following a hawkish Fed decision.
- Fed indicated only one rate reduction this year, negatively impacting risk‑asset sentiment.
- A prolonged tighter monetary policy outlook pressures crypto and other high-risk markets.
Bitcoin’s earliest holders, often referred to as original gangsters, are selling off their assets after the Federal Reserve unsettled expectations regarding reduced borrowing costs.
Data from blockchain analytics firm Lookonchain indicates that at least two long-term holders collectively sold over 1,650 BTC valued at more than $117.87 million early Thursday.
Related Posts
One experienced whale, who had previously liquidated an 11,000‑BTC cache, added another 650 BTC to his sale, while another early adopter OG with a 5,000‑BTC reserve offloaded a full 1,000 BTC.
Bitcoin’s value fell nearly 1% to $70,600 shortly before publication, extending Wednesday’s 3.5% decline from $74,500, according to CoinDesk data. The wider market also declined, with the CoinDesk 20 Index down 3% to 2,056 points. Ether (ETH), XRP (XRP), solana (SOL), and experienced similar declines.
The downturn followed a hawkish Fed rate decision on Wednesday, when the central bank maintained the benchmark borrowing cost unchanged in the 3.5%–3.75% range while indicating a slower trajectory for rate cuts, disappointing those betting on risk assets.
The hawkish sentiment was conveyed through the so‑called interest‑rate “dot plot,” which displays where the Fed’s voting members anticipate interest rates to be in the near future. The median forecast suggested only one rate cut this year, despite recent weaknesses in the labor market. Furthermore, only two committee members remained supportive of two cuts, and Chair Powell’s own personal forecast increased.
"The higher for longer narrative has been reinvigorated by sticky inflation and the inflationary pressures stemming from rising energy costs, compelling investors to let go of their hopes for a swift easing cycle," stated Matt Mena, a crypto research strategist at 21shares, in an email.
In summary, these trends indicate a central bank that remains cautious about inflation, leading to a significant adjustment in expectations regarding Fed rate cuts. Trading on the decentralized platform Polymarket and pricing in the CME Fed funds futures now suggest an approximately 80% likelihood of only one rate cut this year, compared to a 62% likelihood of two to three cuts a month ago.
This forecast for tighter liquidity is not conducive to risk-taking in financial markets.
