Bitcoin’s Sleepers Awaken as Fed Policy Looms

A long-dormant Bitcoin whale has stirred after over a decade, moving 1,000 BTC valued at approximately $116 million. The transaction occurred just before the U.S. Federal Reserve’s key interest rate decision, an event that many market participants view as a potential turning point for monetary policy in 2025. The coins were originally acquired in January 2014 when Bitcoin traded at around $847, giving the whale a total investment of approximately $847,000. The wallet, which had been inactive since 2014, transferred the entire 1,000 BTC to four new addresses.

This massive transfer highlights a broader trend of older Bitcoin wallets reactivating. In the past week alone, multiple dormant addresses have transferred substantial amounts of Bitcoin. For instance, a 232 BTC wallet, untouched since 2012, recently moved its holdings worth $26.55 million, showcasing Bitcoin's impressive 944,765% return since that time. Additionally, a 14-year-old wallet holding 10,000 BTC was reactivated in late 2025, transferring the entire stash worth nearly $1.1 billion at the current price. Such movements suggest that long-term holders are beginning to engage with the market as Bitcoin continues its upward trajectory.

The timing of these transfers appears to coincide with a broader anticipation of a Fed rate cut. According to the CME Group’s FedWatch tool, 96% of participants currently expect a 25 basis point cut, an increase from 85% a month prior. This anticipation has led to increased volatility in the cryptocurrency market, with Bitcoin prices fluctuating between $107,000 and $109,000 in the past 24 hours. Despite this volatility, the overall market remains near all-time highs, with traders positioning themselves for further accumulation rather than immediate liquidation.

Analysts and traders are closely monitoring the implications of these movements. The majority of Bitcoin holders across exchanges are currently short, with over 57% of traders betting on a price decline. This sentiment contrasts with recent on-chain data indicating that traders on major exchanges like Binance have been accumulating Bitcoin in the lead-up to the FOMC meeting. Meanwhile, Bitcoin futures open interest has decreased by over $2 billion in five days, signaling a reduction in speculative activity among futures traders.

The reactivation of dormant Bitcoin wallets and the associated market behavior underscore the growing influence of global liquidity on Bitcoin’s price. Bitcoin’s price has historically correlated with global M2 money supply growth, with rising liquidity often preceding significant price rallies. This dynamic appears to be playing out once again, with global liquidity surges in early 2025 potentially foreshadowing a new bull market phase for Bitcoin. While short-term volatility remains a factor, the broader narrative suggests that Bitcoin is aligning with global monetary expansion trends.