Bitcoin whales faced significant losses, with a staggering $386 million written off in a single day as reported by CryptoQuant, an on-chain metrics tracker for cryptocurrencies. This latest capitulation is among the largest recorded for new whales on the market.
How did this impact Bitcoin's value? The cryptocurrency dropped from a high of over $94,000 to approximately $90,000 following the US Federal Reserve's recent announcement of a 25 basis point reduction in interest rates. Although lower borrowing costs typically uplift risk assets, concerns over the economy's future overshadowed any immediate advantages from this rate cut.
Analysts suggest that the political climate and economic policies leading up to the 2026 US elections could reignite inflation, which might elevate long-term interest rates. This potential scenario poses challenges for Bitcoin's price stability, as the market adjusts to these external pressures.
Currently, Bitcoin is trading around $90,000, showing a 2% decline in the last 24 hours according to CoinGecko. Investors must remain vigilant and consider these dynamics when making decisions in the cryptocurrency space.