After the US Fed meeting, Bitcoin and the crypto market faced heavy selling pressure. Fed Chair Jerome Powell kept interest rates at 5.25%, hinting at a possible rate cut in September.
Altcoin whales are buying the dips, anticipating a rally driven by increased liquidity from the Fed’s pivot. This strategy signals strong buy walls and potential for a surge in altcoin prices.
CryptoQuant CEO Ki Young Ju observed a rise in limit buy orders for altcoins. Spence Hakimian from Tolou Capital noted that rate cuts and higher fiscal deficits are bullish for crypto, particularly for altcoins with higher beta than Bitcoin.
Ethereum whales have also been accumulating, gathering $450 million worth of ETH in 48 hours, despite ETF outflows.
With the Federal Reserve expected to cut rates, August might be a period of strong accumulation. Analyst Benjamin Cowen suggests this scenario is similar to 2019, where alts bled against Bitcoin until a liquidity pump occurred.
This strategic accumulation by whales highlights the anticipation of a significant market rally, underscoring the long-term importance of the Fed’s upcoming decisions.
