Large, early Bitcoin holders are cutting exposure as a more hawkish stance from the Federal Reserve dampens expectations for aggressive rate cuts, putting pressure on crypto markets and other risk assets.
On-chain data from Lookonchain shows that at least two long-term whales offloaded a combined 1,650 BTC—worth roughly $118 million—early Thursday. One seasoned investor, who had previously sold 11,000 BTC, added another 650 BTC to the sell-off, while another early adopter liquidated 1,000 BTC from a 5,000 BTC holding.
The selling coincided with a pullback in Bitcoin, which slipped करीब 1% to around $70,600, extending its previous session’s 3.5% drop from $74,500, according to CoinDesk data. The broader market also weakened, with the CoinDesk 20 Index falling about 3%. Major tokens including Ethereum, XRP, Solana, and Dogecoin also moved lower.
The decline followed the Fed’s latest policy decision, where rates were held steady in the 3.5%–3.75% range, but policymakers signaled a slower pace of easing ahead. The shift disappointed investors who had been anticipating multiple rate cuts this year.
The central bank’s updated “dot plot” reinforced the hawkish tone, showing that officials now expect just one rate cut in 2026, despite signs of softness in the labor market. Only a handful of policymakers still project more than one cut, while Fed Chair Jerome Powell also raised his own rate outlook.
Matt Mena of 21Shares said persistent inflation and rising energy prices are reviving the “higher-for-longer” narrative, forcing markets to scale back expectations for rapid monetary easing.
This repricing is evident in derivatives and prediction markets. Data from Polymarket and CME Group now points to roughly an 80% chance of just one rate cut this year—up significantly from a month ago, when traders were pricing in two or three cuts.
With tighter liquidity conditions back in focus, the environment has turned less supportive for risk assets, prompting large Bitcoin holders to lock in profits and reduce positions.
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