Old whales sell bitcoin, while new players enter the market.
There are high chances of an interest rate cut in the US on Wednesday.
The price of bitcoin (BTC), the main digital currency on the market, begins the week below $90,000.
At the time of this publication, as can be seen in the CriptoNoticias Price Calculator, the price of each BTC is $89,200 on the main exchanges.
The following graph, provided by the CoinGecko portal, shows how bitcoin has behaved in the last 7 days.
A host of factors keep bitcoin in this state of indecision or lateization in its price.
For example, a determining factor in last week’s initial correction was the behavior of “whales” (entities holding more than 1,000 bitcoin). According to data revealed by analysis firms, BTC inflows to exchanges like Binance by these actors doubled.
Movements of this kind are generally interpreted as an intention to sell or hedge. It suggests that the market’s biggest players went into “defensive mode”, reducing their risk appetite after hitting all-time highs.
But, while the old and native actors of the ecosystem showed caution, the world of traditional finance (TradFi) took a step forward.
Two giants changed the board this week: Vanguard and Bank of America. Vanguard, historically conservative and reluctant to digital assets, will finally offer bitcoin exposure to its clients, a signal that does not necessarily respond to an ideological change but to “commercial survival.” They can’t afford to be the only closed door in the neighborhood.
In the midst of this scenario, the company Strategy (formerly known as MicroStrategy) and its CEO, Michael Saylor, continues to be a barometer for the market.
Despite the fall in its shares and the risk of being delisted from the MSCI index – which generated fears of forced sales – reports from JP Morgan brought calm by indicating that the company’s financial health is strong and that there is no immediate pressure for them to liquidate their bitcoin holdings.
Bitcoin, waiting for the FED’s decision
All eyes are on the next one Wednesday December 10. The meeting of the Federal Open Market Committee (FOMC) of the US Federal Reserve (FED) is the event that could define the trend closing of the year.
According to futures markets and prediction platforms, there is a greater than 90% probability that the FED will announce a new interest rate cut.
Historically, a drop in Treasury bond rates and yields—which this week pierced the 4% floor—favors risk assets and finite supplies like bitcoin, by injecting liquidity into the system.
Therefore, if this occursbitcoin could rise in the coming days, perhaps consolidating its position above $90,000 with enough volume (and setting $100,000 as the next goal).
On the other hand, if the FED’s decision were not what the market expected (which is very unlikely), bitcoin could be on the verge of a new collapse in its price.