Bitcoin Whales Turn Cautious Ahead of Fed Decision as Binance Inflows Drop 44.3%
Summary
- Bitcoin whale investors' Binance inflows fell 44.3% to $3.9 billion over the past 30 days from about $7 billion on June 12.
- Retail investors' Binance inflows, by contrast, fell only 22% to about $7.8 billion from $10 billion in June, leaving them at roughly twice the level of whale inflows.
- An unexpected rate hike at the July FOMC could trigger a sharp jump in volatility for risk assets including Bitcoin.
Forecast Trend Report by Period
Bitcoin whales have turned cautious three days before the Federal Reserve's interest-rate decision, while retail investors have continued to send coins to exchanges at a relatively active pace.
CryptoQuant contributor Amr Taha wrote in a July 27 report that Bitcoin flows into Binance show a clear split between whales and retail investors ahead of the Federal Open Market Committee meeting.
Over the past 30 days, whale investors sent $3.9 billion of Bitcoin to Binance. That was down 44.3% from roughly $7 billion recorded on June 12.
Retail investors, by contrast, sent about $7.8 billion to Binance, down only 22% from $10 billion in June. By volume alone, retail Bitcoin inflows to the exchange were about twice those of whales.
The shift suggests retail investors are replacing whales as the main source of Bitcoin deposits to exchanges.
The July FOMC meeting is scheduled for 3 a.m. Korea time on July 30. As of July 27, the CME FedWatch Tool showed markets assigning a 68.5% probability to the Fed holding rates steady.
The odds of a 0.25 percentage-point increase stood at 31.5%.
An unexpected rate increase could lift Treasury yields and the dollar. In that case, volatility in risk assets such as Bitcoin could surge.
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.