In the lead-up to the US Federal Reserve’s monetary policy decision, the cryptocurrency market is on edge, with Bitcoin’s price slipping below the $68,000 threshold. The market has observed a notable outflow from US-listed spot Bitcoin ETFs, totaling $64.9 million, marking the first net loss since late May. This withdrawal of funds has contributed to a 3.7% decline in Bitcoin’s value, with the current price hovering around $66,800. Ethereum and other major cryptocurrencies have also seen slight declines.Despite the downturn, eight of the top 30 publicly traded Bitcoin miners have reached market capitalizations over $1 billion, indicating a resilient sector within the broader volatile market. Analysts are cautioning that Bitcoin could fall to as low as $60,000 if the market does not find strong support soon. However, some experts, like cryptocurrency analyst Lucas Josa, suggest that the dip presents a buying opportunity, recommending investors to capitalize on the potential for further price corrections.As the market braces for the Federal Reserve’s announcement and the release of May’s Consumer Price Index (CPI) data, the sentiment among investors is mixed. While some anticipate a prolonged tightening of monetary policy and a consequent amplification of aversion to risk assets, others, like financial author Robert Kiyosaki, maintain optimism about Bitcoin’s long-term prospects.The next few days are critical for the cryptocurrency market as it awaits the Fed’s decision and inflation figures, which will likely dictate the immediate trajectory of Bitcoin and other digital assets.
Key points
- Bitcoin’s price struggles below $70,000 with recent drops to around $66,800.
- ETFs tracking Bitcoin experienced significant outflows, with a total net loss of $64.9 million.
- Market anticipates impact of the US Federal Reserve’s interest rate decision and inflation data on cryptocurrency prices.
