A whale spent $85.42 million in USDC to purchase 1,075.6 BTC at an average price of $79,412 over the last four days, according to Lookonchain data. This accumulation occurs against a backdrop of growing macroeconomic pressure and bearish outlook for Bitcoin, yet the market sentiment remains in "greed" territory with big whales maintaining confidence in Bitcoin's prospects. Whale accumulation has accelerated since July when Bitcoin's monthly wick extended down to around $57K, with BTC rallying approximately 35% from that low, suggesting consistent demand from large holders throughout the current rally. The accumulation pattern challenges the traditional bearish setup as Bitcoin consolidates around $75K, with the whale purchase potentially setting up a textbook bear trap scenario.
Bitcoin is currently trading near $75,000 after experiencing a slight retreat from the $78,000 mark, with profit-taking and market dynamics influencing the cryptocurrency's performance. The cryptocurrency was trading at $77,267 mark as of recent reports, showing some consolidation after the initial recovery from the CPI data release. In the past 24 hours, Bitcoin was up 0.1% while Ethereum posted stronger gains of 2.1% to trade at $2,521 mark, according to The Economic Times. Among the major altcoins, BNB, XRP, Solana, Tron, and Dogecoin rallied up to 2%, while Hyperliquid and Cardano were down respectively. The global crypto market capitalization has seen a marginal rise to $2.73 trillion, indicating some recovery from earlier volatility.
Polymarket traders have raised the probability of a Federal Reserve rate hike to 81% following Friday's CPI report, up from 59% before the data release. The latest CPI figure came in slightly higher than expected, with US August inflation rising 0.4% compared to 0.1% in July, leaving America's inflation comfortably above the Fed's 2% level with annual inflation standing at 3.4%. Nearly every major financial institution now prices in a rate hike from the Federal Reserve next week, with Bank of America pricing in a 75-bps hike. Fed funds futures placed the probability of a September increase at 61% after the jobs report, up from 52% beforehand, with two-year Treasury yields climbing five basis points to 4.38% and the 10-year yield reaching 4.776%. A quarter-point increase would take the federal funds target range to 3.75% to 4%, representing the Fed's first hike since July 2023.
Bitcoin's Long/Short Ratio for the last 24 hours has dropped to 0.79, hitting the lowest level in more than a month, according to CoinGlass data. Such a reading implies a shift in sentiment among traders ahead of the FOMC decision, with growing bearishness as banks factor in rate hikes. Technically, Bitcoin is at an important level with $76K as the immediate support, and $75.5K the level bulls really need to defend, while Ethereum is holding the $2,400–$2,425 support band, with $2,500–$2,525 remaining the immediate resistance. The crypto fear and greed index has slightly risen to 73, with sentiments turning to greed, indicating that despite initial volatility, Bitcoin and the broader crypto market are finding stability amid the inflation data release.
The broader cryptocurrency market is experiencing recovery alongside Bitcoin's rebound, with Ethereum leading the wider crypto market during today's session. The gains that started before the CPI report cannot be attributed to the inflation result, but their resistance to fall showed that the initial Bitcoin fall had not spread over the market. Bitcoin's market cap calmed at $1.560 trillion and its dominance over altcoins stands at 59% on CMC. The cumulative market cap of all crypto assets has declined by over 2% in the past day, now down to $2.65 trillion on CMC. The global crypto market capitalisation edged down 1.87% to $2.66 trillion, according to CoinMarketCap, while the crypto fear and greed index has slightly risen to 73, with sentiments turning to greed. The rebound shows that despite initial volatility, Bitcoin and the broader crypto market are finding stability amid the inflation data release. The next major catalyst is the September 15–16 FOMC meeting, where policy guidance and the rate outlook are likely to drive the next major move, according to Riya Sehgal, Research Analyst at Delta Exchange.
