Behavior of Bitcoin Whales Before the Federal Reserve Decision: Calm, Caution, and Implicit Optimism

The percentage of Bitcoin whales has sharply decreased from 0.7 in mid-November to 0.3 on December 10, indicating a noticeable decline in the volume of Bitcoin being sent by Bitcoin whales to trading platforms. This reflects a decrease in selling pressure, minimal distribution, and a lack of any indication that major investors are ready to offload their coins.

Typically, before significant macroeconomic drivers like the Federal Reserve's interest rate decision, Bitcoin whales reduce risk by moving Bitcoin to trading platforms, or by reducing exposure, or hedging. However, the situation is different this time. The inflows and outflows of Bitcoin whales remain unusually low. The absence of activity related to trading platforms suggests that major investors are choosing to adopt a wait-and-see approach, keeping their assets in cold wallets rather than preparing for market volatility. Despite the recovery of the Bitcoin price from $85,000 to $92,000, the percentage of Bitcoin whales continued to decline. This indicates that major investors have not sold aggressively nor capped the rise. Rather, they seem to be holding onto their accumulated positions and waiting for guidance post the Federal Reserve decision, instead of taking profits or offloading risks.

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