Bitcoin saw one of the largest on-chain supply migrations in history, with over 8% of the total supply changing hands in the past week amid growing expectations around the Federal Reserve’s December rate decision and possible rate cuts.

The move sits within a broader backdrop of crypto market uncertainty and ongoing discussions about instruments and funds tied to investor sentiment.

Some of the transfer activity is linked to a Coinbase Wallet Migration announced recently, which Burnett says could account for up to half of the observed movement.

Analyst Joe Burnett notes that past large supply movements have coincided with local market bottoms and later accumulation, suggesting the current movement could reflect a buildup toward a new cycle.

A price recovery from around $81,000 to about $87,000 is being attributed by some to rising rate-cut expectations, linking macro events to recent price moves.

Market sentiment sits on a knife’s edge ahead of the December Fed decision, as traders await the impact on Bitcoin’s price and any Santa rally or dump.

Nic Puckrin of The Coin Bureau says the Fed decision will largely shape year-end market direction, with jitters likely to persist as the December 10 press conference nears.

Markets have priced in an 82% probability of a 25 basis point rate cut in December, up from 50% a week prior, according to CME Group’s FedWatch tool.

The 8% on-chain movement is described as one of the most significant supply shifts in Bitcoin’s history by analyst Joe Burnett.