Hawkish Fed Spurs Bitcoin Long-Term Holders to Sell More Than $100 Million in BTC

The US Federal Reserve held its benchmark interest rate at 5.25%–5.50% on June 12, 2024, and signaled that it might cut rates only once that year. Persistently high rates keep funding costs elevated and weaken investors’ appetite for risk, putting Bitcoin and other crypto assets under selling pressure.

After the Fed announced its rate decision, long-term Bitcoin holders sold more than 1,650 BTC, worth about $117 million at the time. The sale of more than $100 million showed that early holders had begun taking profits as expectations for 2024 rate cuts faded, adding to short-term volatility in the cryptocurrency market.