Whale buys 2,000 Bitcoin in 4 days, now holds $490m in BTC

A significant Bitcoin transaction was recorded on September 2, when an investor purchased 1,000 BTC for $57.3 million.

This whale purchase marks the second time in four days that 1,000 Bitcoin (BTC) has been acquired on Binance, bringing the total holdings to 2,000 BTC. The investor now holds 8,559 BTC worth $490 million.

The surge in Bitcoin holdings coincides with Bitcoin’s price falling nearly 8% last week as markets enter September. Bitcoin briefly touched $61,000 on Aug. 29 before falling back, reaching nearly $57,000 on Sept. 1.

Historically, Bitcoin has experienced losses in six of the last seven Septembers, with average losses over those years being around 4.5%.

🚨 BREAKING NEWS 🚨

A WHALE BUYS 1,000 BITCONS
WORTH $57.3 MILLION ON BINANCE
TODAY.

THIS WHALE IN THE LAST 4 DAYS
SAVED 2000 BTC AND
HOLD TOTAL 8559 BTC NOW
VALUE: 490 MILLION DOLLARS. pic.twitter.com/J7LK3vdLeY

— CryptoRaro (@CryptoRaro) September 2, 2024

Will the Fed lower interest rates?

Despite this bearish trend, an expected Federal Reserve rate cut could trigger a rally in Bitcoin, according to QCP. Rising Bitcoin dominance, declining crypto exchange balances, and strong market fundamentals are potentially setting Bitcoin up for the upcoming bull run.

On the other hand, Bitfinex analysts warn that Bitcoin could experience a significant drop of up to 20% due to uncertainty regarding the Federal Reserve’s upcoming interest rate decision.

A 25 basis point cut by the Fed could lead to long-term gains for Bitcoin by increasing liquidity, while a more aggressive 50 basis point cut could cause an initial price rally followed by a correction as recession fears rise.

Will Bitcoin Recover?

The amount of Bitcoin held on exchanges has fallen to its lowest level this year, an indication of low market liquidity and reduced coin movement by investors.

This could lead to a bounce in Bitcoin. Other potential catalysts for Bitcoin’s growth include a weakening US dollar, rising US government debt, and positive signals from the options market, which could push the price higher later this year.