A dormant Bitcoin whale has resurfaced after more than a decade, transferring 1,000 BTC worth around $116 million just hours before the U.S. Federal Reserve’s latest interest rate decision. The massive move has rattled the crypto community, with many linking the timing to the highly anticipated Federal Open Market Committee (FOMC) meeting.

Blockchain data shows the whale originally acquired the stash for roughly $847,000, paying just $847 per coin over 12 years ago. The transfer to new wallets comes as markets brace for what could be the Fed’s first interest rate cut of the year. According to CME Group’s FedWatch tool, 96% of participants expect a 25 basis point reduction, up from 85% last month.

Market analysts say the Fed’s move could define the next phase for risk assets like Bitcoin. Into The Cryptoverse founder Benjamin Cowen described the event as “the most important FOMC of our lives… until the next one,” in a post on X.

Despite optimism over a potential cut, traders are preparing for near-term downside. Data shows 57% of Bitcoin positions across exchanges are short, with futures open interest falling more than $2 billion in just five days. The selloff suggests heightened de-risking ahead of the Fed’s decision.

Yet some traders are betting on a rebound. Binance, the world’s largest exchange, recorded nine consecutive days of Bitcoin outflows, a trend analysts at CryptoQuant say has fueled the coin’s climb from $108,000 to $115,000.

Looking ahead, Bank of America expects at least two Fed cuts in 2025, while Goldman Sachs is predicting three separate 25 basis point reductions this year. The rare whale movement, paired with policy uncertainty, has set the stage for significant volatility in the days ahead.