Bitcoin Price Spikes Ahead of Fed Decision as Whales Buy Record Amount

Bitcoin's price action has been closely watched as markets await the Federal Reserve's rate decision. The Fed is widely expected to hold benchmark interest rates steady at 3.50%–3.75%, but traders are paying close attention to what Fed Chair Jerome Powell says about inflation and the path for future rate cuts.

The key risk, according to Bitfinex analysts, is a 'hot' Producer Price Index reading combined with a hawkish tone from Powell. This combination would be the most damaging outcome for equities and risk assets like crypto.

On-chain data shows that whales have been buying up Bitcoin, with wallets holding between 100 and 100,000 BTC purchasing around 30,000 BTC in the first 16 days of March. This works out to roughly $2.1 billion worth of buying, according to Santiment.

Bitcoin ETFs also posted their sixth straight day of positive net inflows, pulling in a combined $963 million over that stretch. Analysts say the consistent inflows reflect growing institutional demand.