Bitcoin Below 90,000 USD: Whales Sell While TradFi Enters the Market and the FED Decides

Source: Criptonoticias Original Title: Bitcoin starts Sunday below USD 90,000: What will happen this week? Original Link: https://www.criptonoticias.com/mercados/bitcoin-domingo-90000-semana/

Market Movements and Key Factors

Bitcoin (BTC) starts the week below $90,000. At the time of this publication, the price of each BTC is $89,200 on the main exchanges.

A combination of factors is keeping bitcoin in this state of price indecision. A decisive factor was the behavior of the whales (entities holding more than 1,000 bitcoin). According to data from analytics firms, BTC inflows to exchanges by these actors have doubled. Movements of this kind are generally interpreted as an intention to sell or hedge, suggesting that the largest players in the market have gone into defensive mode after reaching all-time highs.

However, while old players in the ecosystem showed caution, the world of traditional finance (TradFi) stepped forward. Vanguard, historically conservative and reluctant towards digital assets, will finally offer bitcoin exposure to its clients. Bank of America also changed the game this week. These moves represent an important signal of commercial survival in the traditional financial sector.

Amid this scenario, the company Strategy (formerly known as MicroStrategy) and its CEO, Michael Saylor, continues to be a barometer for the market. Despite the drop in its stock and the risk of being delisted from the MSCI index, JP Morgan reports brought some calm by pointing out that the company’s financial health is solid and that there is no immediate pressure to liquidate its bitcoin holdings.

Bitcoin Awaits the FED’s Decision

All eyes are on the upcoming Wednesday, December 10. The meeting of the Federal Open Market Committee (FOMC) of the U.S. Federal Reserve (FED) is the event that could define the year-end trend.

According to futures markets and prediction platforms, there is a greater than 90% probability that the FED will announce a new interest rate cut.

Historically, a drop in rates and Treasury yields favors risk assets and finite supplies like bitcoin, by injecting liquidity into the system.

Therefore, if this happens, bitcoin could see a rise in the coming days, possibly consolidating its position above $90,000 with sufficient volume (and setting $100,000 as the next target). On the other hand, if the FED’s decision is not what the market expects (which is very unlikely), bitcoin could be on the verge of a new price drop.