Key Points
- Bitcoin’s price dropped by nearly 5%, reaching lows of $66k ahead of this week’s FOMC meeting.
- A previously dormant Bitcoin wallet transferred over $535 million to several addresses, including Binance.
Bitcoin’s value experienced a slump of almost 5% on Tuesday, falling to a low of $66k. This downturn in the crypto market comes just before this week’s Federal Open Market Committee (FOMC) meeting.
The price of Bitcoin on Coinbase dropped to $66,018, erasing the gains made when the price peaked at $71,974 last Friday.
Bitcoin’s Recent Performance
According to data from CoinGecko, Bitcoin’s value decreased by nearly 5% in 24 hours. The leading cryptocurrency has seen its weekly gains reduced and was down by 6% at the time of writing.
Bitcoin’s struggles this week occurred after spot Bitcoin ETFs ended a 19-day streak of net inflows on Monday. The sector recorded outflows of approximately $65 million.
On Tuesday, a Bitcoin wallet that had been inactive for over five years suddenly transferred 8,000 BTC, worth over $535 million, to several addresses, including Binance.
According to Lookonchain, this wallet received 8,000 BTC on December 6, 2018, when the price of Bitcoin was $3,810.
Market Sentiment Ahead of FOMC
Despite the price remaining well above the psychological $60,000 level, the upcoming FOMC minutes and commentary from Fed Chair Jerome Powell have investors on high alert.
This concern aligns with the overall macro environment, including this week’s expected economic reports. Market experts have highlighted this as a potential factor for investors to consider.
Analysts at QCP Capital, a global digital asset trading firm, have stated that markets are in a risk-off mode ahead of the CPI and FOMC.
Historical Trends and Predictions
Despite the potential for further price dips ahead of these macroeconomic reports and the Fed’s interest decision, crypto analysts Moustache and Max have noted that the FOMC has historically been bullish for Bitcoin.
Crypto trader Moustache highlighted a bullish inverse head & shoulders pattern in Bitcoin’s performance, with past FOMC meetings marking the low of the left shoulder and head.
Analyst Max shared a Bitcoin price chart with FOMC meetings marked, noting that the last three meetings coincided with a dip and then a bullish flip. Another crypto analyst, Ali Martinez, also noted that Bitcoin tends to rebound after every FOMC meeting.
