Interesting movement is observed in the crypto market. The oldest investors in Bitcoin have started to sell significantly in recent days — on Thursday, we saw over $117 million worth of 1,650 BTC being liquidated. According to blockchain data, a whale who previously sold 11,000 BTC sold an additional 650 BTC, while another early investor emptied 1,000 BTC from their 5,000 BTC pool.

The reason behind these sales is clear: the collapse of expectations for Fed interest rate cuts. Wednesday’s Federal Reserve decision has caused disappointment. While the central bank kept borrowing costs between 3.5% and 3.75%, it only indicated one rate cut this year. A month ago, market expectations included two or three cuts; now, the probability of just one cut has risen to 80%. In other words, the market has become much more cautious about Fed rate cuts.

In this environment, risky assets are under pressure. Bitcoin started Wednesday with a 3.5% decline from $74,500 and fell to $70,600 when the news was written. Ethereum, XRP, Solana, and Dogecoin experienced similar losses. Broader market indices also dropped by 3%.

As a result, investors understand that the Fed’s rate cut cycle will be slower. The prolonged expectation of tight monetary policy is making those willing to take risks uneasy. Former Bitcoin holders have picked up this signal and are reducing their positions. The market now faces concerns about inflation and energy prices rather than lower borrowing costs. In short, the Fed rate cut week was tough for crypto.