Fed Meeting Looms as Bitcoin Whales Stay Put and ETFs Suffer Losses

The behavior of large Bitcoin holders and retail investors is diverging as traders await the Federal Reserve's upcoming policy meeting.

According to Binance data, deposits by 'whales' have declined by 44% in June, while smaller investor deposits dropped by 22%. This indicates that whales are not unloading their coins before the Fed's decision.

Institutional sentiment weakened last week, with Bitcoin exchange-traded funds (ETFs) from the US losing $465 million. However, Farside Investors believes this reflects short-term risk reduction rather than panic selling.

The upcoming Federal Reserve meeting on July 28-29 is expected to determine the next direction for institutional capital. Markus Levin, co-founder of XYO, expects institutional demand to recover if macroeconomic uncertainty continues to ease.