Over 8% Of Bitcoin Changed Hands In Week, Markets On ‘knife’s...

Bitcoin saw one of its largest supply migrations ever as traders braced for the US Federal Reserve’s December rate decision and shifting expectations toward a rate cut.

A historic shift in Bitcoin ownership unfolded during the latest market downturn, while the broader crypto market remained tied to uncertainty over a possible US Federal Reserve rate cut in December.

Over 8% of the total Bitcoin (BTC) supply changed hands in the past seven days, making the current market decline “one of the most significant onchain events” in Bitcoin history, according to Joe Burnett, analyst and director of Bitcoin Strategy at Semler Scientific.

During previous significant Bitcoin supply movements, Bitcoin traded at about $5,000 in March 2020 and around $3,500 in December 2018, said Burnett in a Tuesday X post.

Both occasions marked a local bottom ahead of an accumulation phase that ultimately led to new all-time highs.

Still, up to half of the current Bitcoin supply movement may be attributed to a Coinbase Wallet Migration announced on Saturday, added Burnett.

Related: Bitcoin rout continues as crypto treasuries face reckoning: Finance Redefined

Meanwhile, Bitcoin's price and investor sentiment remain on a “knife’s edge” due to mixed messages about December’s interest rate cut decisions, according to Nic Puckrin, digital asset analyst and co-founder of educational platform The Coin Bureau.

“What is more certain, though, is that the Fed holds the key to the market’s end-of-year finale, and its next rate decision will determine whether we get a Santa rally or a Santa dump,” he told Cointelegraph.

Related: $1.9B exodus and flicker of hope hits crypto investment funds: CoinShares

Source: CoinTelegraph