Gate News, March 19 — The Federal Reserve’s latest hawkish rate decision has dampened market expectations for rate cuts. The largest early Bitcoin holders have begun to sell off in large quantities, with at least two long-term holders selling over 1,650 BTC combined on Thursday, worth approximately $118 million.
Blockchain data shows that a seasoned investor who previously sold 11,000 BTC has sold an additional 650 BTC, while another early adopter holding 5,000 BTC sold all 1,000 BTC. Following this sell-off, Bitcoin’s price dropped nearly 1% to around $70,600, continuing the decline from $74,500 on Wednesday, a 3.5% decrease. The overall crypto market is also weak, with Ethereum (ETH), Ripple (XRP), Solana (SOL), and Dogecoin (DOGE) experiencing similar declines. The CoinDesk 20 index fell 3% to 2,056 points.
The Federal Reserve kept the benchmark interest rate unchanged at 3.5% to 3.75%, but signaled a slowdown in future rate cuts. Hawkish sentiment was clearly reflected in the dot plot. Despite recent softening in the labor market, median forecasts suggest only one rate cut this year, while Chair Powell’s personal projections have raised interest rate expectations. This outlook has prompted investors to adjust their bets, abandoning expectations of a rapid rate-cut cycle.
Crypto research strategist Matt Mena pointed out that ongoing inflation and rising energy costs have increased concerns about prolonged high interest rates, prompting veteran investors to lock in profits early. Decentralized trading platform Polymarket and CME Fed Funds futures pricing indicate about an 80% chance of only one rate cut this year, a significant decline from the two to three cuts forecasted a month ago.
Investors should monitor key Bitcoin support levels and Federal Reserve monetary policy developments, as these will directly impact short-term volatility and risk appetite for major cryptocurrencies like Bitcoin, Ethereum, and Dogecoin. (CoinDesk)
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