Longtime Bitcoin holders are scaling back positions as a more hawkish outlook from the Federal Reserve dampens hopes for aggressive rate cuts, pressuring crypto and broader risk markets.

On-chain data from Lookonchain shows that at least two early investors offloaded a combined 1,650 BTC—worth करीब $118 million—early Thursday. One major whale, who had already sold 11,000 BTC previously, added another 650 BTC to the tally, while a separate early adopter liquidated 1,000 BTC from a 5,000 BTC holding.

The selling coincided with a dip in Bitcoin, which fell roughly 1% to around $70,600, extending a 3.5% drop from the prior session’s $74,500 level, according to CoinDesk data. The broader market also softened, with the CoinDesk 20 Index declining about 3%. Other major tokens—including Ethereum, XRP, Solana, and Dogecoin—posted similar losses.

The weakness followed the Fed’s latest policy decision, which kept rates unchanged in the 3.5%–3.75% range but signaled a slower pace of easing ahead. That guidance disappointed investors who had been positioning for multiple cuts this year.

The central bank’s updated “dot plot” reinforced the message, showing the median forecast now points to just one rate cut despite emerging signs of labor market softness. Only a handful of policymakers still expect more than one cut, while Chair Jerome Powell also revised his outlook higher.

Matt Mena of 21Shares said persistent inflation and rising energy prices are strengthening the “higher-for-longer” narrative, forcing markets to reassess expectations for rapid monetary easing.

That repricing is evident in market bets. Data from Polymarket and CME Group Fed funds futures now indicate roughly an 80% probability of just one rate cut this year—up sharply from a month ago, when traders were leaning toward two or three cuts.

With tighter liquidity back in focus, the backdrop has become less favorable for risk assets, prompting large Bitcoin holders to lock in gains and reduce exposure.