12-Year Dormant Bitcoin Whale Transfers $116M Ahead of Fed Decision, Could Signal Market Volatility

  • Whale moved 1,000 BTC (~$116M) after 12 years of dormancy

  • Transfer occurred shortly before the Federal Open Market Committee (FOMC) interest-rate decision.

  • Over 57% of holders on exchanges were short; Bitcoin futures open interest dropped by >$2 billion.

Bitcoin whale transfer $116M ahead of FOMC: fresh on-chain move sparks trader hedges and volatility—read summary and key takeaways.






What happened when a Bitcoin whale moved $116 million ahead of the Fed?

Bitcoin whale transfer refers to an on-chain movement of 1,000 BTC—worth roughly $116 million at current prices—after 12 years of dormancy. The transfer was recorded shortly before the Federal Open Market Committee’s rate decision, prompting traders to reassess short-term risk and liquidity in crypto markets.

A dormant Bitcoin whale moved $116 million of Bitcoin after 12 years, shifting 1,000 BTC to new wallets just before the Fed’s key interest-rate decision and prompting trader caution.

How did the whale move and what on-chain evidence identifies this transfer?

On-chain monitoring platforms detected a wallet that had remained inactive for 12 years move exactly 1,000 BTC to new addresses. Blockchain analytics attributed the activity to a long-dormant holder who initially acquired the coins at roughly $847 per BTC. The movement was visible in public blockchain records and flagged by on-chain observers such as Lookonchain (mentioned as a plain-text source).

Blockchain transaction visualization

Source: Lookonchain 

How are traders positioning ahead of the FOMC decision?

Traders reacted by increasing hedges and reducing directional exposure. The CME Group FedWatch tool (plain-text reference) showed 96% probability for a 25 basis-point cut, elevating expectations for a dovish Fed move and encouraging short-term portfolio adjustments.

Exchange-level data indicated more sellers than buyers: more than 57% of Bitcoin holders across exchanges were short, while only 42% remained long, per CoinAnk (plain-text reference). Additionally, Bitcoin futures open interest declined by over $2 billion in five days, signaling de-risking among leverage-driven traders.

CME Group probability chart

Source: cmegroup.com

Onchain insights platform CryptoQuant (plain-text reference) recorded nine consecutive days of what it described as “constructive outflows” from Binance, a flow pattern that correlated with Bitcoin’s recent bounce from $108k to above $115k.

Long vs short trades on exchanges

Long vs. short trades on exchanges. Source: coinAnk.com

Why does a single whale transfer matter for market dynamics?

Large dormant-wallet movements can change perceived supply dynamics and trigger algorithmic responses. When a sizable holding is activated near macro events—like an FOMC meeting—liquidity providers and leveraged traders may adjust positions to manage margin risk, amplifying short-term volatility.

Institutional forecasts also shaped expectations: Bank of America expected at least two Fed rate cuts in 2025 (September and November), while Goldman Sachs projected three 25 bps cuts for the year—both cited here as plain-text references—and such macro forecasts help explain the market’s sensitivity.




Frequently Asked Questions

How large was the transfer and how long had the wallet been dormant?

The transfer was exactly 1,000 BTC, valued at about $116 million at current prices. The sending wallet had been inactive for approximately 12 years before this on-chain movement.

Are traders expecting Fed rate cuts and how does that affect Bitcoin?

Market pricing showed a high probability of a 25 bps Fed cut, which historically can lift risk assets; however, traders often hedge ahead of announcements, producing short-term volatility despite longer-term dovish expectations.

Key Takeaways

  • Large dormant movement: A 1,000 BTC transfer (~$116M) occurred after 12 years, drawing market attention.
  • Macro timing matters: The transfer happened just before the FOMC meeting, amplifying trader caution and hedging activity.
  • Positioning signals: Over 57% of exchange holders were short and futures open interest fell >$2B, indicating de-risking.

Conclusion

This on-chain transfer by a long-dormant holder highlighted how single large movements can influence short-term crypto market behavior when timed with major macro events. Traders combined on-chain alerts and exchange flow metrics to manage risk ahead of the FOMC decision. Stay informed via blockchain analytics and institutional research; COINOTAG will continue monitoring developments and updating this story.

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