Early Bitcoin investors are trimming their holdings as the Federal Reserve adopts a more hawkish tone, undermining expectations for multiple rate cuts and weighing on risk assets.
Data from Lookonchain indicates that at least two long-term whales sold a combined 1,650 BTC—valued at nearly $118 million—early Thursday. One veteran holder, who had previously liquidated an 11,000 BTC position, sold an additional 650 BTC, while another early adopter offloaded 1,000 BTC from a 5,000 BTC stash.
The selling pressure came as Bitcoin slipped about 1% to near $70,600, extending a 3.5% decline from the prior session’s $74,500 level, according to CoinDesk data. The broader market followed suit, with the CoinDesk 20 Index dropping roughly 3%. Major tokens such as Ethereum, XRP, Solana, and Dogecoin also recorded losses.
The downturn followed the Fed’s latest policy update, where officials held rates steady in the 3.5%–3.75% range but signaled fewer cuts ahead than markets had hoped. Investors had been expecting a more aggressive easing path.
The shift was underscored by the Fed’s updated “dot plot,” which showed the median expectation now points to just one rate cut this year, even as labor market data shows signs of softening. Only a small number of policymakers continue to forecast multiple cuts, while Chair Jerome Powell also nudged his own projections higher.
According to Matt Mena of 21Shares, persistent inflation and rising energy costs are reinforcing a “higher-for-longer” policy outlook, forcing investors to dial back expectations for rapid monetary easing.
Market pricing reflects that shift. Activity on Polymarket and CME Group Fed funds futures now suggests roughly an 80% probability of just one rate cut this year—up from expectations a month ago, when traders were leaning toward multiple reductions.
With tighter liquidity conditions back in focus, sentiment toward risk assets has weakened, prompting large Bitcoin holders to reduce exposure and secure profits
