Bitcoin (BTC) is close to losing the $65,000 price level at the time of writing, losing 2.7% in the last 24 hours. The price slump comes nearly 48 hours after the FOMC announced it would hold interest rates in the US, a decision that reflects the Fed’s focus on balancing inflation control with economic stability. Bitfinex analysts already expected this short-term volatility, although the overall trend remains positive.
“Especially if the broader economic outlook continues to improve. Historically, 3 out of the last 4 CPI prints have also led to local tops for Bitcoin, indicating potential volatility around such announcements,” explained the analysts. “Bitcoin could consolidate around current levels or experience moderate gains as investors remain optimistic about future rate cuts later in the year.”
Additionally, it also affects spot Bitcoin exchange-traded funds (ETFs) flows, as they may stabilize after the hold decision caused by investors’ hesitance before clearer signals from the Fed’s future policy come out.
“Spot Bitcoin ETFs might see steady inflows, but the momentum could be less pronounced compared to a rate cut scenario. The launch of Ether ETFs could still attract significant interest, potentially leading to diversified investments across both Bitcoin and Ethereum ETFs.”
Moreover, the trader who identifies himself as Rekt Capital, highlighted on X that Bitcoin got rejected by the range high of the current accumulation range, which consists of a low at $60,500 and a high at $71,500.
Bitcoin has rejected from the Range High of the Re-Accumulation Range
History continues to prevail$BTC #Crypto #Bitcoin https://t.co/aIEmA0QFrq pic.twitter.com/zjDljx4fjj
— Rekt Capital (@rektcapital) June 14, 2024
As the trader highlighted earlier in June, this rejection makes BTC bound to stay in this range until September, when the start of a parabolic upward movement is expected.
