A significant Bitcoin transaction was recorded on Sept. 2 when an investor purchased 1,000 BTC for $57.3 million.
This whale purchase marks the second time in four days that 1,000 Bitcoin Bitcoin
BTC
3.19%
Bitcoin were acquired on Binance, bringing the total accumulation to 2,000 BTC. The investor currently holds 8,559 BTC, valued at $490 million.
The increase in Bitcoin holdings coincides with Bitcoin’s price dropping by nearly 8% over the past week as the markets enter September. Bitcoin briefly touched $61,000 on August 29 before slumping and almost touching $57,000 on Sept. 1.
Historically, Bitcoin has experienced losses in six out of the last seven September months, with average losses of around 4.5% during those years.
Will the Fed cut lower the interest rates?
Even with the current downward trend, a possible rate cut by the Federal Reserve could spark a Bitcoin surge, as noted by QCP. Factors like increasing Bitcoin dominance, lower balances on crypto exchanges, and solid market fundamentals suggest that Bitcoin might enter a bullish phase soon.
However, analysts from Bitfinex warn that Bitcoin could drop significantly, by as much as 20%, due to the uncertainty around the Fed’s interest rate decision.
If the Fed cuts rates by 25 basis points, it could boost Bitcoin’s long-term prospects by enhancing liquidity. On the other hand, a larger cut of 50 basis points might cause an initial price jump, but could be followed by a decline as recession concerns rise.
Will Bitcoin Bounce back soon?
The amount of Bitcoin held on exchanges has dropped to its lowest level this year, suggesting reduced market liquidity and a decline in investor engagement with coin transactions.
This scenario could set the stage for a possible recovery in Bitcoin’s price. Other elements that might support Bitcoin’s rise include a weakening US dollar, rising public debt in the United States, and positive developments in the options market, all of which could push prices higher in the upcoming months.
Source: Crypto.news
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