Bitcoin Defies Rate Hike Fears as Whale Buying Spikes
Bitcoin is facing increasing pressure from rising rate-hike bets and bearish sentiment ahead of the Federal Reserve's FOMC meeting next week. The latest CPI figure showed US inflation rose 0.4% in August, keeping it above the Fed's 2% target and paving the way for a potential interest rate hike.
Nearly every major financial institution now prices in a rate hike from the Federal Reserve, with Bank of America expecting a 75-basis-point increase. This has contributed to growing bearishness among traders, who are increasingly shorting Bitcoin.
However, according to CoinGlass data, Bitcoin's Long/Short Ratio for the last 24 hours has dropped to 0.79, suggesting a shift in sentiment among traders. Meanwhile, a single whale has spent $85.42 million on 1,075.6 BTC at an average price of $79,412 over the past four days.
The accumulation by whales is taking place despite growing macroeconomic pressure and a bearish outlook for Bitcoin. However, market sentiment remains in the 'greed' territory, indicating that big holders still have confidence in Bitcoin's prospects.