Bitcoin (BTC) price slumped nearly 5% on Tuesday, hitting lows of $66k as the crypto market turned negative ahead of this week’s FOMC meeting.
BTC price dropped to lows of $66,018 on Coinbase to wipe out gains seen when prices reached highs of $71,974 last Friday.
CoinStats data showed Bitcoin traded nearly 5% down in 24 hours. The flagship cryptocurrency has pared weekly gains and was down 6% during this period at the time of writing.
Why Is Bitcoin Price Down On Tuesday?
The benchmark cryptocurrency’s struggles this week come after spot Bitcoin ETFs snapped a decent 19-day streak of net inflows on Monday. Data showed the sector recorded outflows of about $65 million.
Also on Tuesday, a Bitcoin wallet that had been dormant for more than 5 years, suddenly woke up and transferred 8,000 BTC worth more than $535 million to several addresses, including Binance.
According to Lookonchain, this wallet received 8,000 BTC on December 6, 2018. The price of Bitcoin was $3,810 at the time.
A wallet that had been dormant for 5.5 years transferred 8K $BTC($535.64M) to #Binance 40 mins ago.
The wallet received 8K $BTC on Dec 6, 2018, when the $BTC price was $3,810.https://t.co/zvxAKbHKi6 pic.twitter.com/ZKZHdm4JkR
— Lookonchain (@lookonchain) June 11, 2024
Risk-off Mood Ahead Of CPI And FOMC
While price remains well above the psychological $60,000 level, the upcoming FOMC minutes and Fed Chair Jerome Powell’s commentary has investors keenly watching.
It ties in with the overall macro environment, including the economic reports expected this week, and market experts have signaled this as a scenario that could feature highly on investors’ list of factors to consider.
“Markets are risk-off mode ahead of CPI and FOMC tomorrow. This month’s FOMC will also release the Dot Plot, which informs the market how many cuts the Fed anticipates for the rest of 2024,” analysts at QCP Capital, a global digital asset trading firm and market maker, said.
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3. Markets are risk-off mode ahead of CPI and FOMC tomorrow. This month's FOMC will also release the Dot Plot, which informs the market how many cuts the Fed anticipates for the rest of 2024.
— QCP (@QCPgroup) June 11, 2024
Analyst: ‘We’ve Seen This Before’
Although prices could dip further ahead of these macroeconomic reports and Fed’s interest decision, pseudonymous crypto analysts Moustache and Max say FOMC has historically been bullish for Bitcoin.
“FOMC tomorrow and $BTC forms a bullish inverse head & shoulders pattern here. The past FOMC meetings have already marked the low of the left shoulder + head. Right shoulder next?” crypto trader Moustache pointed out to his 123,000 X followers.
FOMC tomorrow and $BTC forms a bullish inverse head & shoulders pattern here.
The past FOMC meetings have already marked the low of the left shoulder + head. Right shoulder next?
Probably just a coincidence.👀
So far, this meetings have mostly been bullish for BTC. pic.twitter.com/EbtYIkgswZ
— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 🧲 (@el_crypto_prof) June 11, 2024
Sharing a Bitcoin price chart with FOMC meetings mapped on it, Max notes the last three have coincided with a dip and then a bullish flip. “We’ve seen this before,” the analyst posted on X.
Last 3 FOMC meetings marked out over $BTC's price action.
We've seen this before. pic.twitter.com/GQhTLV5pll
— Max (@MaxBecauseBTC) June 11, 2024
“Bitcoin loves to rebound after every FOMC meeting,” another crypto analyst Ali Martinez noted.
#Bitcoin loves to rebound after every FOMC meeting! pic.twitter.com/i9UghrD1vJ
— Ali (@ali_charts) June 11, 2024
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