4 months ago
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The notable movement of the US government’s Bitcoin holdings amid upcoming FOMC statements has fueled BTC’s bearish sentiment.
Bitcoin (BTC) price dropped more than 4 percent in the past 24 hours to trade around $66,922 on Tuesday during the early European session. The total crypto market cap declined about 3 percent in the past 24 hours to hover about $2.51 trillion. Consequently, more than $167 million was liquidated from the entire crypto derivatives market, mostly involving long traders.
Bitcoin price got rejected at around $70K, signaling a possible reversal in the coming weeks. In the daily time frame against the US dollar, Bitcoin price has formed a potential double top coupled with a bearish divergence on the Relative Strength Index (RSI).
Bitcoin Price Under Pressure from US Political Climate
Although Bitcoin price has significantly benefited from the approval of spot BTC ETFs in the United States, the notable divide between the top two political parties on crypto issues has weighed heavily on bullish sentiment. Less than a week since Donald Trump pledged to support the Bitcoin and crypto industry, including never selling the current holdings, the Biden administration transferred over $2 billion worth of BTCs in the past 24 hours.
#PeckShieldAlert #USGov. (#SilkRoad seizure)-labeled address bc1qje…wzde has transferred ~29.8K $BTC (worth ~$2B) to 2 new addresses bc1qla…2zek (Balance: 9,999.999 $BTC) & bc1qng…kz4c (Balance: 19,799.99 $BTC) pic.twitter.com/HafnEUCYRR
— PeckShieldAlert (@PeckShieldAlert) July 30, 2024
The move by the Biden administration to move nearly 30K Bitcoins, less than three days after Trump’s speech over the weekend, has been criticized widely. For instance, Mike Novogratz, CEO of Galaxy, termed the idea as a dump for ignoring the crypto investors.
According to Republican Senator Cynthia Lummis, the Biden administration through Senator Elizabeth Warren continues to suppress the crypto community without paying attention to the growing demand.
This is the first action taken after Harris “reset with bitcoin and crypto”.
When someone shows you who they are, believe them. ⤵️ https://t.co/viISTWUwXS
— Cynthia Lummis 🦬 (@CynthiaMLummis) July 29, 2024
Meanwhile, Democratic presidential candidate Kamala Harris is reportedly considering Michigan Senator Gary Peters as a running mate. Notably, Peters is not a pro-crypto lawmaker and has in the past co-sponsored the Digital Asset Money Laundering Act in 2023.
Economic Outlook
Ahead of tomorrow’s Federal funds rate and the BoJ policy rate, Bitcoin price is expected to lead the crypto industry in heightened volatility. As Coinspeaker previously reported, the US Fed is likely to hold its benchmark interest rate despite the recent cuts in China, the EU, and Canada. Nonetheless, there is a high chance the Fed will initiate interest rate cuts later this year.
Meanwhile, long-term investors led by BlackRock Inc (NYSE: BLK) have continuously accumulated irrespective of the heightened volatility. Moreover, Bitcoin has offered investors a way out from global fiat inflation, whereby the US debt just crossed $35 trillion.
According to on-chain data, four whales accumulated 5.9k Bitcoins from different exchanges in the past 24 hours. BlackRock’s IBIT registered a net cash inflow of about $205.62 million on Monday, thus negating the outflows from GBTC and FBTC.
Midterm BTC Price Prediction
From a technical standpoint, Bitcoin price is likely to drop towards the support level of around $60K before rebounding to a new all-time high before the end of this year. In case Bitcoin price slips below $60K again, the flagship coin will likely retrace towards $52K.
