A Bitcoin Whale Moves 1,000 Bitcoin After 12 Years of Inactivity

Highlights:

• A dormant Bitcoin wallet reactivated after 12 years, transferring $116 million in BTC.
• Traders brace for volatility as the Fed prepares its crucial interest rate decision.
• Market sentiment remains divided, with some reducing risk while others accumulate Bitcoin steadily.

A long-inactive Bitcoin holder moved 1,000 BTC, worth about $116.6 million, for the first time in over 12 years on Tuesday. Onchain data shows the wallet called 1NzH…DrtpZo sent all of it to four new addresses. The coins were first received in January 2014, when Bitcoin was about $847 each.

Advertisement

Analysts at Arkham and Lookonchain do not know who owns the old wallet or the new ones. The transfer of more than $100 million happened just before Wednesday’s Federal Open Market Committee meeting, which many expect could bring the first U.S. interest rate cut of the year.

A whale transferred all 1,000 $BTC($116.88M) to new wallets after 12 years of dormancy.

The whale received 1,000 $BTC($847K at the time) 12 years ago, when the price of $BTC was $847.https://t.co/ugNQypaX8e pic.twitter.com/Yee2Pa410l

— Lookonchain (@lookonchain) September 17, 2025

Crypto Traders Brace for FOMC Volatility

Analysts say the Fed’s upcoming decision is one of the biggest of the year. There is a 96% probability of a 25 basis points cut at Wednesday’s FOMC meeting, while the chance of a 50 basis points cut stands at 4%, according to CME’s FedWatch tool.

Meanwhile, on Polymarket, bettors also show high confidence in a 25 basis points cut with odds at 93%, while expectations for a 50 basis points reduction remain at just 5%. Benjamin Cowen, founder and CEO of Into The Cryptoverse, said in a Wednesday X post that the next day’s FOMC meeting would be the most important one so far, at least until the following meeting.

Tomorrow is the most important FOMC of our lives

…until the next one

— Benjamin Cowen (@intocryptoverse) September 17, 2025

Even with a positive outlook, most crypto traders expect a short-term drop in prices. About 57% of Bitcoin holders across exchanges are betting the price will fall, while 42% are betting it will rise, according to CoinAnk data.

Bitcoin futures open interest has also dropped by more than $2 billion in five days, showing that many futures traders are cutting risk before the FOMC meeting. Still, traders on Binance, the biggest crypto exchange, have been buying Bitcoin ahead of the interest rate decision. Binance recorded nine straight days of steady Bitcoin withdrawals before the FOMC meeting, which CryptoQuant says helped push the price up from about $108,000 to over $115,000.

FOMC Ahead: Nine Constructive Days of Outflows from Binance

“This trend appears to be a major driver behind Bitcoin’s recent bounce from $108k to +$115k. The steady outflows from Binance may reflect early positioning ahead of this [FOMC] event.” – By @JA_Maartun pic.twitter.com/VjE1Uz2Fny

— CryptoQuant.com (@cryptoquant_com) September 17, 2025

Bitcoin needs to turn $118,000 resistance into support to aim for new highs. Analyst Jelle said breaking and holding above $118K could lead Bitcoin toward fresh all-time highs.

#Bitcoin keeps slowly grinding higher, now pushing into the 116.5-118k resistance area.

Break 118k and hold above it, and new all-time highs are next. pic.twitter.com/RtIYXeFsBd

— Jelle (@CryptoJelleNL) September 17, 2025

Bitcoin Climbs as Fed Rate Cuts Expected and Dormant Wallets Reactivate

Bank of America analysts expect the Fed to cut interest rates at least twice in 2025, in September and November. Goldman Sachs economists believe there could be three quarter-point cuts this year. Bitcoin was up 0.87% in the past day, trading at about $116,624, according to CoinMarketCap. The price has climbed 2.64% over the past week. 

Old Bitcoin wallets have become more active as the crypto market has risen. Last week, a wallet holding 445 BTC moved 132 BTC to a new address and sent 5 BTC to a Kraken exchange wallet, ending nearly 13 years of inactivity. In July, a whale from the early days of bitcoin sold over 80,000 BTC worth more than $9 billion then, through Galaxy Digital as part of estate planning.

Advertisement