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 (BTC) 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.
🚨 BREAKING 🚨 A WHALE BOUGHT 1,000 BITCOIN WORTH $57.3 MILLION ON BINANCE TODAY.IN THE LAST 4 DAYS, THIS WHALE HAS ACCUMULATED 2000 BTC AND NOW HOLD A TOTAL OF 8559 BTC WORTH $490 MILLION. pic.twitter.com/J7LK3vdLeY
— CryptoRaro (@CryptoRaro) September 2, 2024
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Will the Fed cut interest rates?
Despite this downward trend, an anticipated Federal Reserve rate cut could trigger a Bitcoin rally, according to QCP. Rising Bitcoin dominance, declining crypto exchange balances, and strong market fundamentals are positioning Bitcoin for a potentially bullish phase ahead.
On the flip side, Bitfinex analysts caution that Bitcoin may experience a significant decline of up to 20% due to uncertainty surrounding the Federal Reserve’s upcoming interest rate decision.
While a 25 basis point cut by the Fed could lead to long-term gains for Bitcoin by increasing liquidity, a more aggressive 50 basis point cut might trigger an initial price spike followed by a correction as recession fears grow.
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Will Bitcoin bounce back?
The amount of Bitcoin held on exchanges dropped to its lowest level this year, signaling low market liquidity and reduced investor movement of coins.
This could lead to a Bitcoin bounce. Other potential catalysts for Bitcoin’s growth include a weakening US dollar, rising US public debt, and positive signals from the options market, which could push the price higher later this year.
