Bitcoin

Bitcoin Faces Potential Drop Below $50K as Whales Prepare to Sell BTC

Bitcoin might drop below the critical $50,000 mark this coming weekend, as noted by Arthur Hayes, the former CEO of crypto exchange BitMEX. In a recent post, Hayes expressed concerns about Bitcoin’s current momentum:

“BTC is heavy, I’m gunning for sub $50k this weekend. I took a cheeky short. Pray for my soul, for I am a degen.”

This prediction comes amid a general bearish trend for Bitcoin in September, a month that historically sees declines. Recently, Bitcoin lost its support level of $55,000, slipping 1.4% to $54,340. Over the week, it has fallen nearly 8%.

Significant selling activity by Bitcoin whales, who hold large quantities of BTC, is also adding to the downward pressure. Recently, a notable whale sold 100 BTC, securing over $206,000 in profits. Further analysis by Lookonchain suggests that numerous addresses, holding approximately 402,000 BTC purchased at prices between $51,113 and $54,303, are positioned to sell around their break-even points.

Adding to the market’s volatility, Galaxy Digital moved $78.5 million in BTC to Coinbase Prime, potentially gearing up for more sales.

Bitcoin to see more downward pressure leading up to interest rate cut

As the U.S. approaches a potential interest rate cut on September 18, Bitcoin’s price could face additional downward pressures. Alvin Kan, COO of Bitget Wallet, predicts a rocky period ahead until the Federal Reserve’s decision:

“We expect BTC and the equity markets to face downward pressure leading up to the Fed’s official rate cut announcement. Once the rate cut is confirmed after the September FOMC meeting, we may see a short- to mid-term boost in risk assets.”

Market analysts from Bitfinex also foresee a drop below $50,000 before a genuine bull rally, noting that historical cycles and market corrections tend to follow a reducing pattern in peak returns.

Current betting odds from the CME FedWatch tool show a 70% likelihood of a 25 basis-point cut and a 30% chance of a 50 basis-point cut, reflecting a growing expectation among investors for easing monetary policy, which could ultimately influence Bitcoin’s near-term price movements.