The release of the Federal Open Market Committee (FOMC) minutes from the June meeting indicates that central bankers are uncertain about the future of the economy in the coming months. The influence of their deliberations on interest rate hike decisions could significantly impact crypto markets. Meanwhile, the number of large bitcoin investors has increased, although their distribution has undergone changes.
In June, caution prevailed during the FOMC meeting as the minutes reveal that Fed officials cautiously projected the possibility of an economic recession within the next six months, followed by a moderate recovery. They expressed their expectations that such a recession would neither be severe nor prolonged.
Nevertheless, the Fed appears to be treading cautiously, with their recent decision to halt rate hikes reflecting a cautious approach to monetary policy. The U.S. economy has proven to be more resilient than anticipated by the FOMC, and conflicting economic data has introduced uncertainty.
For instance, at 8:15 a.m. (ET), the ADP employment data showed that private businesses created over 497,000 jobs in June, the highest number since February 2022 and well above the expected 228,000. However, just an hour and 45 minutes later, the Job Openings and Labor Turnover Survey (JOLTS) revealed a surprisingly significant decline in job openings during the same period.
While the broader investment community grapples with macroeconomic data, certain bitcoin whales have grown in size, displaying a degree of uncertainty similar to that of the FOMC. Bitcoin whales are bitcoin investors who hold more than 1,000 BTC. Since June 14, the day before BlackRock, a prominent asset management firm, filed for a spot bitcoin ETF, the number of BTC whales has increased by 1.6%, reversing a short-term downtrend that began on May 20. The distribution of whale-held bitcoin implies varying levels of confidence.
Investors holding 1,000-10,000 BTC have seen a 2% increase (90,396 BTC) since June 14. A similar gain has occurred among investors holding over 100,000 BTC, with their supply growing by 3% (107,883 BTC). However, bitcoin investors holding between 10,000 and 100,000 BTC have experienced a 10% decrease (184,153 BTC) in their supply since June 14. This particular group perceives risk differently and exhibits less confidence in bitcoin compared to the other two cohorts.
As the macroeconomic landscape becomes clearer, investors should closely monitor which cohort has made more profitable decisions.