As a seasoned crypto investor with several years of experience under my belt, I’ve seen my fair share of market volatility and uncertainty. The recent selling pressure on Bitcoin is nothing new to me, but the constant speculation around the Federal Reserve’s decision on interest rates has certainly added an extra layer of anxiety for investors like myself.
As a researcher studying the cryptocurrency market, I can tell you that Bitcoin, the largest digital currency in the world, is experiencing some downward pressure from sellers. The recent dip in price has caused Bitcoin to slide below the $68,500 mark within the past 24 hours, representing a 2% decrease. Traders are growing anxious ahead of the Federal Reserve’s upcoming decision regarding interest rate cuts.
Fed to Keep Interest Rates Higher for Longer Than Expected
Last week, the European Central Bank and Bank of Canada made a shift by reducing their interest rates. In contrast, the Federal Reserve seems unwilling to follow suit based on the robust employment figures released recently.
As a crypto investor, I’ve witnessed Bitcoin reaching an unprecedented peak at $73,798 back in March, fueled by substantial investments into US Bitcoin ETFs. However, since then, Bitcoin has found it difficult to surpass this milestone. The upcoming inflation figures and the Federal Reserve’s perspective on Wednesday could intensify worries that interest rates will persistently stay high, casting a shadow over speculative assets like cryptocurrencies. In an interview with Bloomberg, Anand Gomes, Paradigm’s co-founder and a derivatives platform expert, shared his concerns.
In the realm of cryptocurrencies, the absence of positive news can be disconcerting. The market behaves much like an addiction-prone individual in need of a fix. Consequently, when favorable information is scarce, the market trend tends to head downward.
More Pain Ahead for Bitcoin?
As a Bitcoin analyst, I’ve observed an unusual miner capitulation taking place in the cryptocurrency market. This event is closely tied to the recent halving, which has the effect of pushing out less profitable miners. These miners, who are no longer able to sustain their operations, sell off their Bitcoins as a result. Based on historical trends, I anticipate that the price of Bitcoin will recover after these sell-offs have been exhausted.
As a researcher studying the Bitcoin market, I would caution against expecting a significant price surge without first observing a reduction in excessive speculation within the Bitcoin futures markets. The process of liquidating positions held by overly speculative traders is crucial before a potential price increase can occur – this is a key point to keep in mind.
As an analyst, I’ve noticed a shift in the trend for Bitcoin Exchange-Traded Funds (ETFs) recently. After 19 consecutive days of substantial inflows, on June 10th, these funds experienced their first net outflow, totaling $64.9318 million.
The Grayscale ETF (GBTC) experienced a large-scale withdrawal of approximately $39.54 million in a single day. Meanwhile, the Bitwise ETF (BITB) recorded an intake of around $7.59 million, and the BlackRock ETF (IBIT) reported attracting about $6.34 million during the same period.
$BTC #ETF Net Inflow June 10, 2024: -$65M!
• The net inflow turned negative after being positive for 19 consecutive trading days.
• The single-day inflow of #BlackRock (IBIT) dropped dramatically from $168M to only $6.3M.
• #Grayscale (GBTC) has maintained an outflow of…
— Spot On Chain (@spotonchain) June 11, 2024
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2024-06-11 07:44