Bitcoin
Bitcoin Stumbles Below $31K Ahead of FOMC Meeting Minutes
Bitcoin price has been holding steady above the crucial level of $30,000 for the past few days as investors await the FOMC meeting minutes for June. At the time of writing, Bitcoin was trading more than 1% lower at $30,429.40 after flirting with the important level of $31K for a few days. BTC’s total market cap has slipped to $591 billion over the last day, with the total volume of the asset dropping by 8% to $13 billion.
Fundamentals
Bitcoin price has been hovering around its multi-month high of $31,430 for the past few days before stumbling lower later on Tuesday. Bitcoin, the largest cryptocurrency by market cap, has been in the red for two consecutive days ahead of the Fed’s meeting minutes for June. The asset’s pullback has seen most cryptocurrencies, including Ethereum, inch lower.
The global crypto market cap decreased by more than 2% on Wednesday to $1.19 trillion, while the total crypto market volume remained almost unchanged. Bitcoin’s dominance has increased slightly to 49.77% over the past 24 hours. Even with the shallow pullback in the crypto market, market sentiment indicates that investors have renewed their confidence in the industry.
The Fear and Greed Index, which is used to measure the emotions driving the market, shows that greed has taken over the market as investors get too confident in the crypto market. Over the past week, the greed index has climbed consistently above 50 to the current greed level of 63. The shift in the crypto market sentiment has been buoyed by the exponential increase in the institutional accumulation of Bitcoin and bullish on-chain metrics.
The US Federal Reserve meeting minutes for June are set to be released later in the day, giving investors a chance to hound for clues about the central bank’s interest rate path. The Fed announced a reprieve in its fund rate hike for June but signaled the likelihood of further hikes this year. Markets are pricing in an 88% chance of another hike in the Fed’s July meeting. An environment of higher interest rates will be bearish for cryptocurrencies.
Bitcoin Price Outlook
The daily chart shows that the Bitcoin price has been in the red for the past two consecutive days as macroeconomic concerns intensify. Even so, BTC has remained above the 50-day and 200-day exponential moving averages, with the Moving Average Convergence Divergence (MACD) pointing to a bullish trajectory. Its Relative Strength Index (RSI) has dropped slightly to 61.
Therefore, the Bitcoin price is likely to fall further in the ensuing sessions before a price reversal to the upside. Even so, I expect the BTC price to remain above the crucial $30,000 level during this period. A move below the support level at $29,588.85 will lead to more downside.
BTC Price Chart
Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.
Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.
Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
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