bitcoin
Analyst warns BTC crash after Fed meeting, citing whale profit-taking
Large holders are reportedly scaling back their exposure, as Bitcoin whales have liquidated more than $150 million in profits over a mere few days, evidenced by a drop of over 8,160 BTC in a single…
Large holders are reportedly scaling back their exposure, as Bitcoin whales have liquidated more than $150 million in profits over a mere few days, evidenced by a drop of over 8,160 BTC in a single twenty-four-hour period, equating to $664 million.
All attention across the financial world is currently fixed on the highly anticipated US Federal Reserve FOMC gathering, because the outcome will illuminate the central bank's perspectives on monetary policy. Beyond the immediate market reaction following the interest rate call, investors are keenly awaiting the address from Fed Chair Kevin Warsh shortly following the assembly.
The primary digital asset frequently exhibits erratic movements in the days and hours immediately preceding the latest FOMC sessions. In the last twenty-four hours, the asset experienced a notable upward swing, moving from below $79,500 up to $81,700 before its ascent was halted. Ali Martinez offered commentary on this price surge, simultaneously laying out a pessimistic outlook for bitcoin once the meeting concludes. He noted, "In the FOMC meetings I’ve tracked, Bitcoin’s first-hour move has often been less than 1%." Furthermore, he observed that a more defined trajectory typically materializes within the subsequent twenty-four hours, a pattern that has often held true a week later. He added that this historical pattern renders today's price action particularly significant, yet he cautioned that the current on-chain indicators provide him with "reason to be cautious."
Martinez pointed out that the Coinbase Premium Index remains in negative territory, having reached a monthly low of -0.17, which suggests that US investors are either remaining on the sidelines or are actively selling. He also noted that BTC is currently trading above the crucial $81,000 support level, a threshold where nearly one million units previously exchanged hands. Should the price break down decisively from this level, he anticipates a fall toward $77,000, or possibly even as low as $67,000. Conversely, to disprove this bearish argument, the cryptocurrency would need to surpass $84,500, a level where 620,000 units were traded; if this occurs, the path toward $92,000 and $104,000 opens up significantly.
Experts foresee that the FOMC meeting will result in no adjustments to interest rates, making it one of the week's most consequential macroeconomic events. Even though inflation data from the CPI and PPI earlier this month indicated that price increases remain stubbornly high and exceed the Fed's 2% target, markets are reportedly "bracing for a Fed pause" following the first rate increase in over three years last month. Nevertheless, the speech delivered by Kevin Warsh after the FOMC proceedings could prove even more impactful for BTC's valuation. Although the general consensus leans toward no immediate increase, analysts have warned that the Fed retains the capacity to raise rates again in December. The initial report on "Bitcoin Investors Beware: Analyst Warns of BTC Price Crash After Fed Meeting" was published on CryptoPotato.
Why it matters
Market participants are closely watching the FOMC meeting for clues on monetary policy, despite expectations of no immediate rate changes. The analyst's bearish signals, supported by whale activity, suggest significant downside risk for Bitcoin if key support levels fail.
