New Bitcoin On-Chain Signals Arrive Ahead of FOMC Meeting and Rate Cut Expectations
Dormant, long-held Bitcoin supply is re-entering the market as investors await the Federal Reserve's policy decision and potential rate cuts.Summary
Bitcoin traders are observing new on-chain signals indicating that long-dormant supply, including over 2,400 BTC aged over ten years, is moving, which historically suggests distribution rather than accumulation. This coincides with market anticipation of a 25-basis-point rate cut by the Federal Reserve in December, which could improve liquidity and support risk assets.
The movement of this older supply, coupled with softening ETF inflows and reduced institutional appetite, suggests that current price rallies might struggle to sustain momentum. The Coin Days Destroyed metric confirms this trend of experienced holders sending coins to the market while buyers appear to be stepping back.
Despite short-term selling pressure from reactivated supply, institutional analysts like Bernstein remain bullish long-term, projecting Bitcoin could reach $150,000 in 2026. The immediate market direction hinges on the FOMC outcome; expected rate cuts could absorb the selling pressure, whereas a delay or smaller cut might lead to deeper corrections.
(Source：BeInCrypto)