Key Points
- Bitcoin’s price has dropped over 4% ahead of significant news, trading around $66,922.
- The US political climate, particularly the stance of the Biden administration, is putting pressure on Bitcoin’s price.
Bitcoin’s price has seen a decrease of over 4% in the past 24 hours, with the cryptocurrency trading around $66,922 during the early European session on Tuesday.
The total market cap of all cryptocurrencies has also fallen, declining by about 3% in the past 24 hours to sit around $2.51 trillion.
This has resulted in more than $167 million being liquidated from the entire crypto derivatives market, primarily affecting long traders.
Bitcoin Price Rejection
Bitcoin’s price was rejected at around $70K, indicating a potential reversal in the coming weeks.
In the daily time frame against the US dollar, Bitcoin’s price has formed a possible double top, along with a bearish divergence on the Relative Strength Index (RSI).
Despite Bitcoin’s price benefiting significantly from the approval of spot BTC ETFs in the United States, the clear divide between the top two political parties on crypto issues has had a significant impact on bullish sentiment.
Less than a week after 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.
The Biden administration’s decision to move nearly 30K Bitcoins, less than three days after Trump’s speech over the weekend, has been widely criticized.
For example, Mike Novogratz, CEO of Galaxy, described the move 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.
Meanwhile, Democratic presidential candidate Kamala Harris is reportedly considering Michigan Senator Gary Peters as a running mate.
Peters is not a pro-crypto lawmaker and has previously co-sponsored the Digital Asset Money Laundering Act in 2023.
Economic Outlook and Predictions
Ahead of tomorrow’s Federal funds rate and the BoJ policy rate, Bitcoin’s price is expected to lead the crypto industry in heightened volatility.
The US Fed is likely to hold its benchmark interest rate despite the recent cuts in China, the EU, and Canada.
However, there is a high chance the Fed will initiate interest rate cuts later this year.
Long-term investors, led by BlackRock Inc (NYSE: BLK), have continued to accumulate regardless of the heightened volatility.
Furthermore, Bitcoin has offered investors a way out from global fiat inflation, with the US debt recently crossing $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.
From a technical standpoint, Bitcoin’s 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.
If Bitcoin’s price slips below $60K again, the flagship coin will likely retrace towards $52K.
