Bitcoin could face additional downward pressure this weekend as large holders (whales) are looking to lock in profits.
Large Investor Sales
As of Sept. 7, one whale address sold 100 BTC worth over $5.3 million, locking in a profit of $206,000. Subsequently, addresses likely looking to sell at breakeven bought a total of 402,000 BTC worth over $21 billion at prices between $51,113 and $54,303.
Predictions of a Possible Correction
Former CEO of crypto exchange BitMEX, Arthur Hayes, predicted a potential drop below the $50,000 mark in the coming days. Bitcoin also lost key support at $55,000, falling 1.4% to trade at $54,340.
Impact of Interest Rate on Bitcoin Price
A possible interest rate cut in the US could temporarily boost investor sentiment for risk assets like Bitcoin. Bitget Wallet's COO, Alvin Kan, noted that Bitcoin prices might face downward pressure leading up to the official interest rate announcement.
In conclusion, Bitcoin could temporarily fall below $50,000 due to sales from large holders and the anticipation of an interest rate cut. Investors will be closely monitoring upcoming events to determine the next price movements.
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