of Bitcoin BTC$70,565.84 The biggest initial holders, often called the real gangsters, are hitting the sell button after the Federal Reserve dashed expectations of lower borrowing costs.

Blockchain data Tracked by Lookonchain. shows that at least two long-term holders dumped more than 1,650 BTC worth more than $117.87 million early Thursday.

An experienced whale One who had previously sold an 11,000‑BTC stack added another 650 BTC to his dump, while a separate Early adopter OG Complete 1,000 BTC offloaded with 5,000‑BTC stash.

Bitcoin fell nearly 1% to $70,600 before press time, extending Wednesday’s 3.5% slide from $74,500, according to CoinDesk data. The broader market wilted, with the CoinDesk 20 index down 3% to 2,056 points. Ether (ETH), XRP (XRP), Solana (SOL), and DOGE$0.09454 suffered similar losses.

The drop followed a tough Fed rate decision on Wednesday, when the central bank left benchmark borrowing costs unchanged in the 3.5%-3.75% range but signaled a slower pace of further rate cuts, depressing risk assets.

The pessimistic tone came through the so-called interest rate “dot plot,” which shows where the Fed’s voting members expect interest rates to land in the coming months. Despite the recent weakness in the labor market, the median projection pointed to just one rate cut this year. Furthermore, only two committee members remained in the bifurcated camp, and Chair Powell’s own personal projection rose.

“The long-term upside has been reinvigorated by sticky inflation and rising energy costs, forcing investors to abandon their dreams of an era of rapid easing,” Matt Mina, crypto research strategist at 21Shares, said in an email.

Taken together, these developments point to a central bank still wary of inflation and have led to a sharp pricing in bets on a Fed rate cut. Trading on the decentralized platform Polymarket and pricing in CME Fed funds futures now implies a roughly 80% chance of just one rate cut this year, versus a 62% chance of two to three rate cuts a month ago.

This approach of tight liquidity is not conducive to risk taking in financial markets.