Bitcoin (BTC) Price Faces Correction as Whales Accelerate Selling Pressure Ahead of US Rate Cut Decision

September is often a gloomy month for Bitcoin, and a drop below the $50,000 psychological level can happen this weekend, adding further downward pressure.

Bitcoin (BTC) is facing a major correction as several whale addresses are accelerating selling pressure. With the crucial US rate cut decision approaching, traders are bracing for a potential drop below the $50,000 mark, which could heighten market volatility.

Whales Sell as Bitcoin Faces Correction

September is typically a gloomy month for Bitcoin, and a drop below the crucial $50,000 psychological level can occur this weekend, adding further downward pressure.

As whales (entities holding significant sums of BTC) seek to lock in profits, the price of Bitcoin could experience more downside pressure this weekend.

Whale Sell-Off Nets $206K in Profit

One interesting whale address made about $206,000 after selling 100 BTC, which is currently valued at over $5.3 million.

According to a report by the onchain intelligence service Lookonchain on September 7th, a total of 402,000 BTC, valued at over $21 billion, were purchased by addresses that are most likely planning to sell at a breakeven point.

The massive quantity of market-moving wealth that whales possess allows them to substantially affect the price movement of a cryptocurrency. Cryptocurrency traders frequently look to whale selling patterns for clues about the short-term price trend of a coin.

Arthur Hayes Warns of Sub-$50K Drop

Former CEO of cryptocurrency exchange BitMEX Arthur Hayes has warned that Bitcoin could face a drop below the $50,000 psychological level this weekend.

Hayes stated in a post from September 6th.

In the twenty-four hours preceding 9:26 am UTC on September 7, the price of Bitcoin went down 1.4% to $54,340 after losing the crucial $55,000 support. On a weekly basis, the first cryptocurrency in the world has lost about 8% of its value.

Analysts Warn of Pre-Bull Market Drop

Before the actual bull movement begins, Bitfinex analysts warned of a possible drop below $50,000. Here's what the experts revealed to Cointelegraph.

"This is not an arbitrary number, but based on the fact that the cycle peak in terms of percentage return reduces by around 60%–70% each cycle, and the average bull market correction has reduced as well."

Adding to investor concerns about additional selling pressure, Lookonchain noted that one address purchased 100 BTC at $48,000 and later sold them for $53,340, netting a profit of about $533,000.

"This address might continue selling at a higher price to lock in profits, which will put upward pressure on BTC."

Fed Rate Cut Decision Could Impact BTC

Bitcoin and other risk-on assets could see an uptick in investor confidence if the world's biggest economy considers cutting interest rates.

Bitget Wallet COO Alvin Kan predicts that the price of Bitcoin will be under greater downward pressure in the days preceding the interest rate decision on September 18. For Cointelegraph, Kan stated.

“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.”

Rate Cut Could Boost Risk Assets

The short-term price of Bitcoin might be drastically impacted by institutional and whale buyers. "Kan" also mentioned the following:

“Given the current market volatility, there’s a possibility of BTC experiencing liquidity issues, which could cause sharp, temporary price drops. At the moment, there’s about a 40% chance of BTC dipping below $50,000.”

Investors are bracing for a possible interest rate cut when the US Federal Reserve next meets on September 18.

According to the most recent data from the CME FedWatch tool, a 25 basis point rate drop is currently 70% likely, with a 50 basis point cut being 30% likely.

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