Bitcoin Faces Pressure as Fed Decision Nears and Whales Trigger Sell-offs

Key Takeaways:

• Peter Schiff warns Bitcoin is losing steam before the Fed’s September 17 FOMC meeting.
• Gold and silver hold steady as investors seek safer ground.
• Whale trades add volatility despite bullish long-term outlooks.

Bitcoin (BTC) is facing near-term selling pressure as significant holders, known as “whales,” liquidate portions of their holdings ahead of the Federal Reserve's upcoming Federal Open Market Committee (FOMC) meeting on September 17. 

This activity has introduced volatility into the market, despite long-term projections for the asset remaining varied.

Schiff Flags Fed Policy Risks 

On September 14, longtime critic Peter Schiff  warned in an X post that cutting interest rates with inflation still high could prove a “major policy mistake.” He said cheaper borrowing might fuel short-term speculation but would also stoke inflation and add uncertainty to risk assets such as Bitcoin.

The Fed is about to make a major policy mistake by cutting interest rates into rising inflation. Gold and silver have broken out, with the rally finally confirmed by mining stocks leading the way. Yet instead of breaking out, Bitcoin is topping out. Time to change horses HODLers.

— Peter Schiff (@PeterSchiff) September 14, 2025

Markets widely expect at least a 25-basis-point cut. Schiff believes Bitcoin is showing signs of topping out, rather than consolidating, and has urged investors to shift toward gold and silver instead.

This perspective is not universally held. 

Others, like Bridgewater Associates founder Ray Dalio, have previously highlighted structural issues like the growing U.S. debt burden, which could weaken the U.S. dollar and further push the case for non-sovereign store-of-value assets like Bitcoin, with its fixed supply

Dalio notes that governments can issue endless currency, while Bitcoin’s supply is capped, making it an alternative for investors who doubt the stability of fiat.

Whales Add to Market Volatility 

The theoretical debate is compounded by tangible on-chain activity. 

Blockchain analytics firms have reported several large transactions contributing to market volatility. 

On September 8, two long-term wallets transferred 1,176 BTC worth over $136 million to Hyperliquid, according to Lookonchain.

A Bitcoin OG holding 14,837 $BTC($1.69B) sold 670.1 $BTC($76M) today and opened massive longs of 68,130 $ETH($295M).

A whale deposited 670.1 $BTC($76M) to Hyperliquid in the past 20 hours and sold it, then went long on $ETH across 4 wallets with positions totaling 68,130… pic.twitter.com/2xdG2LjgYl

— Lookonchain (@lookonchain) August 21, 2025

That followed a move last month when a whale sold 24,000 BTC worth $2.7 billion, setting off a flash crash. Around the same period, another whale moved $4 billion from Bitcoin to Ether, showing how easily a single trade can jolt the market.

The BTC price now hovers around $116,000, down more than 6.27% from its August record of $124,457. 

Despite this, some experts remain confident about Bitcoin’s outlook. David Bailey, CEO of Nakamoto, projects Bitcoin could rally to $150,000 if adoption by companies and governments keeps growing. 

He warned that whale-driven sell-offs are still the biggest threat, but his view, echoed in recent forecasts, offers a sharp contrast to Schiff’s call for gold and silver.

The split among analysts is clear: Schiff insists Bitcoin is running out of steam, while others argue its long-term appeal grows as confidence in the U.S. dollar erodes. With whale trades and the Fed’s policy decision both looming, investors are bracing for more volatility.