Long-Term Bitcoin Investors Make Bold Moves During Fed Turmoil
In anticipation of the Federal Reserve's upcoming interest rate announcement, Bitcoin accumulation addresses have experienced a significant uptick in asset inflows, indicating increased optimism from long-term holders. Data from CryptoQuant reveals that, just before the Fed's decision, a record-breaking $3.4 billion in
The surge in inflows has happened amid heightened market anticipation leading up to the Fed's rate verdict. Traders and analysts are watching Bitcoin's price action closely, especially as it tests the $116,000 resistance barrier. According to Bitfinex analysts, reclaiming this level is essential for restoring upward momentum. After reaching a high of $124,100 in mid-August, Bitcoin's momentum has slowed, leaving many buyers in the $108,000–$116,000 range at a loss. A decisive move above $116,000 could revive bullish outlooks and confirm analyst Mags' Fibonacci target of $155,600.
On a broader scale, the market is beginning to diverge from traditional stocks, which could make Bitcoin more appealing for portfolio diversification. Swissblock emphasized that the forthcoming FOMC meeting is a critical macro event, with expectations centered on a 25-basis-point rate reduction and steady guidance from the Fed. While most anticipate a dovish stance, Swissblock cautioned that the repricing of expectations could bring about volatility. Nevertheless, Bitcoin is projected to maintain its upward trajectory, albeit with more pronounced price fluctuations.
Further supporting the bullish sentiment, options market data shows that, as per Laevitas.ch, 97% of the $8.3 billion in Bitcoin put options would be worthless if Bitcoin stays above $102,000 at expiration. This highlights growing trader confidence in Bitcoin surpassing key resistance thresholds. Analysts note that short positions being covered above $105,000 could ignite a rally to fresh highs. Both options and futures markets demonstrate active trading on both sides, but the current environment favors bullish positions. The growing use of the "bull put spread"—selling higher-strike puts while buying lower-strike puts—reflects a calculated approach to benefit from upward moves while mitigating risks.
Network data also indicates robust accumulation by long-term participants. On May 14, a net 18,300 BTC was withdrawn from exchanges, reinforcing the perception that institutions and veteran traders are securing Bitcoin for future gains. Such activity often marks a price floor, as these holders are prepared to weather short-term market swings for long-term appreciation. Additionally, institutional interest in Bitcoin is rising, demonstrated by $567 million flowing into spot Bitcoin ETFs by June 2025, which has enhanced market stability and liquidity by dampening short-term volatility.
As the market awaits the Fed's announcement, Bitcoin's ongoing accumulation and price action suggest that a significant rally could be forthcoming. While short-term price swings are likely, both technical and fundamental analysis indicate the upward trend may persist—provided Bitcoin manages to clear major resistance points. The interaction between macroeconomic developments and on-chain trends will play a crucial role in determining Bitcoin's short-term direction.
