Tension Builds Ahead of U.S. Rate Decision #
The anticipation leading up to the new interest rate decision in the United States is rapidly increasing. A potential rate cut could inject additional liquidity, which often benefits risky markets like crypto. While many investors wait on the sidelines, large investors, known as whales, are actively buying. Their behavior indicates they are preparing for a potential rally once the Fed announces its decision.
Ethereum Gains Popularity Among Major Players #
Ethereum has been receiving extra attention this week. The price has moved back above $3,000, which has prompted several whales to take action. Together, they have opened long positions worth over four hundred million dollars. A long position is a bet on a rising price, sometimes using borrowed funds to amplify potential returns.
Meanwhile, BitMine purchased a staggering $432 million (€364 million) worth of ethereum this week. This aggressive strategy is not without reason. Ethereum’s price is forming an ascending triangle pattern, a structure that often signals a potential upward breakout. According to analysts, a break above $3,250 could lead to a rise towards the $4,000 mark.
Altcoins Aster, Pippin, and Chainlink in Demand #
Large investors are also notably buying various altcoins. Aster shows the strongest signal. The price is under pressure, but whales have expanded their holdings. The accumulation by whales during this weakness suggests they expect a recovery after the rate decision. Additionally, Aster is moving in a triangle pattern, which often precedes a larger price movement.
Pippin is another token where whales are active. The token is still significantly higher than a month ago and is now forming a so-called bull flag. If the market reacts positively to the FOMC decision, Pippin could regain momentum.
Chainlink is also on this list. Whales have purchased nearly 30% more tokens in the past week. The price shows hidden bullish divergence, a technical signal indicating that selling pressure is easing while the price remains notably stable.
Market Braces for Movement #
With the rate decision imminent, the market appears to be gearing up for more movement. Whales are already positioning themselves, and the rest of the market watches anxiously to see what will happen. A rate cut could unleash a new wave of optimism, while an unexpected move could cause alarm.
The Federal Reserve’s interest rate decision will be announced tomorrow, December 10, at 8:00 PM Dutch time.