Bitcoin Price Forecasted to Drop as Whales Unload $1.2 Billion in BTC – Could BTC Plummet to $60K?
Arslan Butt
Last updated:
June 19, 2024 14:33 EDT
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4 min read
Bitcoin Price Prediction
Bitcoin (BTC), the original and most valuable cryptocurrency, is facing challenges in maintaining its value, lingering below the $65,500 threshold and hitting a low of $64,100 during the day.
The total global crypto market cap sits at $2.37 trillion, reflecting a 2.50% decline in the past 24 hours. This downward trend is primarily due to the US Federal Reserve’s firm stance, which has put significant pressure on the crypto market.
Furthermore, substantial outflows from Bitcoin ETFs like Fidelity’s FBTC and Grayscale’s GBTC suggest a pessimistic outlook, adding to the downward pressure on Bitcoin’s value.
Whales Sell $1.2 Billion in BTC: Impact on Bitcoin Price and Market Sentiment
Recent data from CryptoQuant reveals that whales have offloaded over $1.2 billion worth of Bitcoin over the last two weeks. These major holders of Bitcoin show little interest in buying back, indicating a continued lack of positive momentum for the cryptocurrency.
Analysts have observed, “Traders are not increasing their Bitcoin holdings, and demand from major holders remains weak.” Speculation suggests that crypto miners might be redirecting their attention to the rapidly growing AI sector, opting to sell their Bitcoin rewards instead of holding onto them.
Both the cryptocurrency and AI industries heavily rely on robust computing chips for their operations and data maintenance.
Key Highlights:
Whales have sold over $1.2 billion in BTC in the last two weeks
Limited renewed interest among long-term holders
Possibility of crypto miners shifting focus to the AI sector
Impact of US Economic Data on Bitcoin and the US Dollar
The US dollar continues to face pressure due to weaker retail sales and easing inflation data, leading to expectations of Federal Reserve rate cuts. Despite the Fed’s slightly more hawkish tone, hinting at only one rate hike this year, investors are anticipating two hikes in 2024.
Soft economic data, including disappointing retail sales and declining inflation, indicates a slowing economy, reinforcing the case for the Fed to lower borrowing costs sooner than anticipated. This uncertainty surrounding the Fed’s rate trajectory is causing subdued price action in the Bitcoin market.
The Commerce Department reported a modest 0.1% increase in US retail sales in May, slightly below the expected 0.2% rise. This subdued figure suggests consumer fatigue and slowing economic activity, bolstering the expectation of earlier rate cuts by the Federal Reserve.
Weaker US retail sales and easing inflation data are raising expectations for Fed rate reductions.
The pressure on the US dollar is creating market uncertainty.
Bitcoin prices remain restrained as investors await further clarity on the Fed’s future moves.
Exit from Spot Bitcoin ETFs Affects Cryptocurrency Market Sentiment
Recent exits from spot Bitcoin ETFs, particularly Fidelity’s FBTC and Grayscale’s GBTC, totaling $152.42 million, have exerted considerable downward pressure on Bitcoin and other cryptocurrencies.
Fidelity’s ETF saw the largest outflow of $83 million, followed by Grayscale with $62 million. This trend, combined with broader market declines, has sparked concerns of a potential bearish phase in the cryptocurrency realm.
Altcoins have also suffered significant losses, dropping from over $760 billion to $603 billion since March.
Despite these challenges, there is hope for a possible recovery with fresh investments. The substantial exits from spot Bitcoin ETFs have intensified the downward pressure on BTC and other cryptocurrencies, leading to worries about a potential bearish trend.
Exits from Fidelity and Grayscale ETFs total $152.42 million.
Altcoins have witnessed notable decline from $760 billion to $603 billion since March.
Optimism remains for a potential rebound with new investments.
Binance CEO’s Upbeat Bitcoin Price Prediction Amid Market Turbulence
Despite recent market fluctuations, Binance CEO Richard Teng maintains a positive outlook on Bitcoin’s future, forecasting a surpass of $80,000 by the end of 2024, with even greater gains anticipated in 2025. He highlighted a unique market cycle where Bitcoin takes the lead, followed by meme coins, deviating from previous cycles.
Recent drops to around $66,000 were influenced by the Federal Reserve’s hawkish stance, prompting significant outflows from crypto Exchange Traded Products (ETPs) amounting to $600 million last week.
Currently, Bitcoin is trading below $65,500, with uncertain market direction, contrasting with mostly positive movements among altcoins, signaling ongoing market volatility and anticipation for potential breakout trends.
Binance CEO predicts Bitcoin will exceed $80,000 by the end of 2024.
Recent market declines influenced by Federal Reserve’s hawkish stance.
Significant outflows from crypto ETPs totaling $600 million last week.
Bitcoin Price Forecast
Bitcoin (BTC/USD) is currently priced at $65,500, showing a 0.51% increase on the 4-hour chart. Key levels to monitor include a pivot point at $65,700, indicating a bearish Bitcoin price prediction.
Immediate resistance levels stand at $66,800, $67,800, and $68,500. On the downside, support is found at $64,200, followed by $63,200 and $62,300.
Technical indicators display a Relative Strength Index (RSI) at 50 and a 50-day Exponential Moving Average (EMA) at $65,900.
The downward channel suggests a bearish trend for Bitcoin. Closing candles below the 50 EMA and an RSI below 50 further support the potential downtrend.
The overall sentiment remains bearish below $65,700. However, a breakout above this level could bolster bullish momentum.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.