During the recent market downturn, Bitcoin ownership underwent a historic shift, while the broader cryptocurrency market remains closely tied to the uncertainty surrounding the Federal Reserve's potential interest rate cuts in December.

According to Joe Burnett, an analyst at Semler Scientific and Bitcoin strategy director, over 8% of the total Bitcoin supply changed hands in the past week, making the current market decline "one of the most significant on-chain events in Bitcoin's history."

Burnett stated in a post on X on Tuesday that during previous significant changes in Bitcoin supply, BTC traded at around $5,000 in March 2020 and about $3,500 in December 2018.

Both periods marked local bottoms, followed by accumulation phases that ultimately led to new historical highs.

However, Burnett added that up to half of the current Bitcoin supply change may be attributed to the Coinbase wallet migration announced on Saturday.

Meanwhile, according to Nic Puckrin, a digital asset analyst and co-founder of the educational platform The Coin Bureau, Bitcoin's price and investor sentiment remain "on a knife's edge" due to mixed signals regarding the December interest rate decision.

He told Cointelegraph, "What is more certain is that the Federal Reserve holds the key to the market's year-end drama, and its next interest rate decision will determine whether we see a Christmas rally or a Christmas crash."

According to the CME Group's FedWatch tool, the market's expectation for a 25 basis point rate cut is at 82%, up from 50% a week ago.

Puckrin noted that the growing expectations for rate cuts are the main driver behind BTC's rebound from $81,000 to $87,000.

Related: U.S. CFTC Acting Chair Seeks CEO for "Innovation Committee," Mentions Cryptocurrency Policy

Original: “Over 8% of Bitcoin (BTC) Changes Hands in a Week, Analyst Says Market is on a 'Knife's Edge'”

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