Early Bitcoin holders offload more than $100 million in BTC as a hawkish Fed dims expectations for rate cuts.

Bitcoin’s earliest adopters are trimming exposure as the Federal Reserve’s hawkish stance dampens expectations for rate cuts, weighing on crypto and broader risk assets.

On-chain data tracked by Lookonchain shows that at least two long-term holders collectively sold more than 1,650 BTC—valued at roughly $117.8 million—early Thursday. One whale, who had previously offloaded an 11,000 BTC position, added another 650 BTC to the sell-off, while a separate early adopter liquidated 1,000 BTC from a 5,000 BTC stash.

The selling pressure coincided with a pullback in Bitcoin, which slipped nearly 1% to around $70,600, extending its 3.5% drop from the previous session’s $74,500 level, according to CoinDesk data. The broader market also weakened, with the CoinDesk 20 Index falling 3%. Major tokens including Ethereum, XRP, Solana, and Dogecoin posted similar losses.

The downturn followed a policy decision from the Federal Reserve, which kept interest rates steady in the 3.5%–3.75% range but signaled a more gradual path for future cuts. The message disappointed investors who had been betting on faster monetary easing.

The Fed’s hawkish tilt was reflected in its updated “dot plot,” showing policymakers expect fewer rate cuts than previously anticipated. The median projection now points to just one cut this year, even as signs of labor-market softness emerge. Only a small minority of officials continue to forecast multiple cuts, while Chair Jerome Powell also revised his outlook higher.

According to Matt Mena of 21Shares, persistent inflation and rising energy costs have reinforced the “higher-for-longer” narrative, forcing markets to reassess expectations for rapid easing.

That shift is visible in market pricing. Data from Polymarket and CME Group Fed funds futures now suggest roughly an 80% probability of a single rate cut this year—up sharply from expectations just a month ago, when traders were leaning toward two or three reductions.

With tighter liquidity conditions back in focus, the outlook has turned less favorable for risk assets, prompting large holders to lock in gains and reduce exposure.