A historic shift in Bitcoin ownership has unfolded during the latest market downturn, while the broader crypto market remains tied to uncertainty over a possible US Federal Reserve rate cut in December.
Over 8% of the total Bitcoin (BTC) supply changed hands over the past seven days, making the current market decline โone of the most significant onchain eventsโ in Bitcoin history, according to Joe Burnett, analyst and director of Bitcoin Strategy at Semler Scientific.
During previous significant Bitcoin supply movements, Bitcoin traded around $5,000 in March 2020 and around $3,500 in December 2018, said Burnett in a Tuesday X post.
Both occasions marked a local bottom ahead of an accumulation phase that ultimately led to new all-time highs.
However, up to half of the current Bitcoin supply movement may be attributed to a Coinbase Wallet Migration announced on Saturday, added Burnett.
Related: Bitcoin rout continues as crypto treasuries face reckoning: Finance Redefined
Bitcoin and crypto markets on โknifeโs edgeโ ahead of Fed interest rate decision in December
Meanwhile, Bitcoin’s price and investor sentiment remain on a โknifeโs edgeโ due to mixed messages about Decemberโs interest rate cut decisions, according to Nic Puckrin, digital asset analyst and co-founder of educational platform The Coin Bureau.
โWhat is more certain, though, is that the Fed holds the key to the marketโs end-of-year finale, and its next rate decision will determine whether we get a Santa rally or a Santa dump,โ he told Cointelegraph.
โAs we get closer to Dec. 10, I expect market jitters to continue, and the Fedโs press conference will certainly have traders on the edge of their seats.โ
Related: $1.9B exodus and flicker of hope hits crypto investment funds: CoinShares
Interest rate cut expectations for the Federal Reserveโs Dec. 10 meeting have changed drastically during the past week
Markets are pricing in an 82% chance of a 25 basis point interest rate cut, up from 50% a week ago, according to the CME Groupโs FedWatch tool.
The growing interest rate cut expectations were the main fuel leading to Bitcoinโs recovery from $81,000 to $87,000, according to Puckrin.
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