Bitcoin is experiencing active accumulation by large investors amid concerns about a potential interest rate hike by the Federal Reserve. The latest U.S. Consumer Price Index (CPI) data showed a 0.4% increase in August compared to 0.1% in July. Annual inflation remained at 3.4%, comfortably above the Fed's target of 2%, allowing for further rate hikes. Almost all major financial institutions are anticipating a Fed rate hike next week, with Bank of America estimating it at 75 basis points. There are just over 72 hours left until the FOMC meeting.
Against this backdrop, a bearish sentiment is gradually building around Bitcoin. The ratio of long to short positions on BTC over the past 24 hours has fallen to 0.79, the lowest level in more than a month, indicating a shift in trader sentiment ahead of the FOMC decision. Given that banks are factoring in a rate hike, there is a growing risk of short position overload if Bitcoin holds its ground.
According to Lookonchain data, over the past four days, one whale spent $85.42 million in USDC to purchase 1,075.6 BTC at an average price of $79,412. The accumulation is occurring amid increasing macroeconomic pressure and negative expectations for Bitcoin, yet market sentiment remains in the 'greed' zone, indicating a continued confident outlook by large holders on the asset's prospects.
Importantly, it's not just one whale accumulating. According to charts, whale accumulation accelerated since July when the monthly BTC wick dipped to the $57k region. Since then, BTC has risen by approximately 35%, indicating steady demand from large holders throughout the growth.
In other words, Bitcoin's resilience to higher CPI, the tough stance of traditional finance, and increased geopolitical risks is unlikely to be a coincidence. Rather, it suggests that 'smart money' is buying on fear while sentiment remains in the greed zone, and accumulation is in full swing. If this trend continues, Bitcoin's consolidation around $75k could very well turn into a classic bear trap.
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