Whale Buys $85M Bitcoin Amid Fed Rate Hike Fears
The recent Consumer Price Index (CPI) figures have come in slightly higher than expected, indicating that US inflation remains above the Federal Reserve's target rate of 2%. This has led to a growing expectation of a rate hike by the Fed.
Major financial institutions are pricing in a rate hike, with Bank of America expecting a 75-basis-point increase. The FOMC meeting is just days away, putting Bitcoin under intense scrutiny.
The market sentiment is shifting, with traders becoming increasingly bearish ahead of the rate decision. However, data from CoinGlass suggests that whales are accumulating Bitcoin, which could be setting up a bear trap scenario.
A single whale spent $85.42 million in USDC to buy 1,075.6 BTC over the last four days, despite growing macroeconomic pressure and a bearish outlook for Bitcoin. This accumulation is part of a larger trend, with big holders consistently buying into Bitcoin throughout its rally since July.
Bitcoin's resilience to these headwinds suggests that smart money is 'buying the fear', and that the market sentiment remains in the greed territory. If this trend persists, the consolidation around $75k could turn into a textbook bear trap scenario.