Bitcoin OGs Unload Over $100M in BTC as Fed Signals Higher-for-Longer Rates

Some of Bitcoin's earliest large holders are stepping up sales after the Federal Reserve reinforced expectations that borrowing costs may stay elevated longer. On-chain data tracked by Lookonchain shows at least two long-term holders sold more than 1,650 BTC early Thursday, valued at over $117.87 million. One long-standing whale, who previously offloaded an 11,000-BTC position, sold an additional 650 BTC. A separate early-adopter OG holding about 5,000 BTC sold 1,000 BTC. Bitcoin slipped nearly 1% to around $70,600 shortly before publication, extending Wednesday's 3.5% drop from $74,500, according to CoinDesk data. Weakness was broad-based: the CoinDesk 20 Index fell 3% to 2,056, while ether (ETH), XRP (XRP), solana (SOL) and DOGE $ 0.09454 posted similar declines. The selloff followed Wednesday's hawkish Fed decision. Policymakers kept the benchmark rate unchanged in the 3.5%–3.75% range and pointed to a slower pace of cuts ahead. The shift was reflected in the interest-rate "dot plot," where the median projection now signals only one cut this year despite recent labor-market weakness. Only two committee members still penciled in two cuts, and Chair Jerome Powell's own projection moved higher. "The higher for longer narrative has been reinvigorated by sticky inflation and the inflationary shadow cast by rising energy costs, forcing investors to abandon their dreams of a rapid easing cycle," Matt Mena, crypto research strategist at 21shares, wrote in an email. Market pricing has adjusted quickly. Betting on Polymarket and CME Fed funds futures now implies roughly an 80% probability of just one rate cut this year, compared with a 62% probability of two to three cuts a month ago. Expectations for tighter liquidity are weighing on risk appetite across financial markets.