A large Bitcoin transaction was recorded on September 2 when an investor purchased 1,000 Bitcoins for $57.3 million.
These whales buy signs Second time Within four days, 1,000 Bitcoin (BTC) were acquired on Binance, bringing the total accumulation to 2,000 BTC. The investor currently holds 8,559 BTC, worth $490 million.
The surge in Bitcoin holdings coincides with a nearly 8% drop in the price of Bitcoin over the past week as markets enter September. Bitcoin briefly touched $61,000 on August 29 before falling to near $57,000 on September 1.
Historically, Bitcoin has seen losses in six of the past seven months in September, with average losses of around 4.5% over those years.
Will the Fed cut interest rates?
Despite this downtrend, the expected interest rate cut by the Federal Reserve could lead to a rise in the value of Bitcoin, according to QCP. Bitcoin’s growing dominance, declining cryptocurrency exchange balances, and strong market fundamentals are positioning Bitcoin for a potential bullish phase in the future.
On the other hand, Bitfinex analysts warn that Bitcoin could see a significant drop of up to 20% due to the uncertainty surrounding the Federal Reserve’s upcoming interest rate decision.
While a 25 basis point rate cut by the Fed could lead to long-term gains for Bitcoin by increasing liquidity, a more aggressive 50 basis point cut could lead to an initial price spike followed by a correction as recession fears grow.
Will Bitcoin price go up again?
The amount of Bitcoin on exchanges has fallen to its lowest level this year, indicating low liquidity in the market and reduced investor movement of the coins.
This could lead to a Bitcoin rally. Other potential catalysts for Bitcoin growth include a weaker US dollar, rising US public debt, and positive signals from the options market, which could push the price higher later this year.