July 24, 2024
Bitcoin Price is $67,698, Hawkish Fed Halts Bitcoin's Run to $70K
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Bitcoin Price is $67,698, Hawkish Fed Halts Bitcoin’s Run to $70K

Thursday, June 13, 2024: Bitcoin Price Today is $67,698, experienced a significant retracement of its previous day’s gains, coinciding with market anticipation of the next round of United States inflation data. Data from TradingView revealed a reversal in the Bitcoin price trajectory after the daily close, following a brief touch of $70,000 by BTC/USD.

BTC/USD 1-hour chart. Source: TradingView

Market Reaction and Fed Commentary

After peaking at $70,000, Bitcoin experienced a sharp decline, reaching new lows of $66,983 on Bitstamp. At the time of writing, Bitcoin was down approximately 1.3% on the day, trading at $67,663. The initial excitement in the market was driven by lower-than-expected Consumer Price Index (CPI) readings. However, the Federal Reserve’s stance on interest rates, as conveyed in their latest meeting, maintained a predictably restrictive policy.

Federal Reserve Chair Jerome Powell’s comments during a press conference appeared to unsettle risk assets. He reiterated that discussions on interest rate cuts were not on the table for the near future. Powell stated, “We think policy is restrictive. And we think, ultimately, that if you just set policy at a restrictive level, eventually you will see a real weakening in the economy.”

“So, that’s always been the thought is that, you know, since we raised rates this far, we’ve always been pointing to cuts at a certain point.”

Fed target rate probabilities for September meeting. Source: CME Group

In response to Powell’s comments, markets adjusted their expectations, reducing the probability of an interest rate cut at the Fed’s September meeting by approximately 10%, according to CME Group’s FedWatch Tool. Financial commentator Tedtalksmacro reacted to the Federal Open Market Committee’s (FOMC) stance on social media, saying, “Today’s FOMC definitely more hawkish than anticipated.”

“However, the market had already priced for this scenario leaving the real takeaway from today to be that disinflation continues (via CPI data). That’s pretty clear from how stocks have moved […] Crypto will follow.”

Bitcoin Price Dynamics and Whale Activity

Analyzing Bitcoin’s price dynamics, trading resource Material Indicators highlighted the significant role of Bitcoin whales in the day’s price volatility. An X post by Material Indicators stated, “Watching Bitcoin completely retrace the morning pump is more evidence that these Killer Whale Games are playing out precisely as I’ve been outlining in my analysis since Friday.” The post pointed out that ongoing shifts in order book liquidity, influenced by external factors such as U.S. macroeconomic data, were driving the price movements.

Material Indicators suggested that these movements were part of a broader pattern, with whales using liquidity shifts to manipulate the price. The analysis emphasized that $69,000 remained a critical level to establish as support for Bitcoin’s price. The post concluded, “Everything you need to know is in the charts,” underscoring the importance of technical analysis in understanding Bitcoin’s price movements.

“IMO, what matters most is that we don’t print a lower low, and that BTC eventually validates an R/S Flip at $69k. Until then, BTC will remain range bound.”

BTC/USDT order book liquidity on Binance. Source: Material Indicators

In summary, Bitcoin’s retracement on June 13 highlights the impact of macroeconomic factors and Federal Reserve policies on cryptocurrency markets. As the market continues to react to inflation data and interest rate decisions, the activity of large Bitcoin holders, or whales, plays a crucial role in short-term price fluctuations. The key support level to watch remains $69,000, as traders and analysts look for stability in the face of ongoing volatility.

Image by bitcoin-schweiz from Pixabay

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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