Bitcoin price has not gained upside momentum yet after the Bitcoin halving in mid-April, with market sentiments still more focused on macroeconomic and geopolitical events. The launch of spot Bitcoin ETFs in the U.S. and other countries brought a paradigm shift in the Bitcoin investment ecosystem. However, with the three Fed rate cuts earlier expected this year out of the picture, experts predict BTC price at the end of the year will remain near $70,000.
Why Is Bitcoin Price Facing Selling Pressure
The approval of spot Bitcoin ETF and later spot Ether ETF were bullish factors enough to trigger a Bitcoin price rally, even a broader crypto market rally. However, a delay in the listing of spot Ethereum ETFs impacted the bullish sentiment, with listing now anticipated by September as per SEC Chair Gary Gensler.
The crypto market cap topped in March at $2.77 trillion, since then investors have lost over $400 billion as the market cap tumbled to $2.33 trillion. The reason is degrading confidence in Bitcoin making another new all-time high due to the delay in the rate cuts by the U.S. Federal Reserve (Fed) from May to later this year.
According to CME FedWatch Tool, the probability of a 25 bps rate cut in September is at 59.5%. The Wall Street giants such as JPMorgan, Goldman Sachs, and Morgan Stanley also anticipate a rate cut as early as September, as reported earlier by CoinGape.
Prediction market Polymarket indicates 33% odds of two rate cuts this year, followed by a 32% chance of a single rate cut as believed by Fed officials.
However, factors such as the U.S. inflation cooling, elections, and rate cuts by peer central banks such as European Central Bank will push the Fed to announce a monetary policy pivot soon. The Bitcoin bull market has cooled down due to macro and geopolitical concerns, primarily followed by institutional investors.
Inflow to spot Bitcoin ETFs have been negative for four consecutive days and caused a negative sentiment in the crypto market. Not a single Bitcoin ETF recorded inflow yesterday, with Fidelity even surpassing GBTC in outflows.
Also Read: Why Is Bitcoin Price Down Today? BTC Crash To $55K Imminent?
BTC Price Remain Range-Bound
BTC price currently trades at $64,930, down 0.62% in the last 24 hours and more than 7% in a week. The 24-hour low and high are $64,066 and $$65,695. However, trading volume has decreased as traders switched to altcoins in the last 24 hours.
Popular analyst Michael van dep Poppe in a recent post on X platform predicted support between $63-64.5K as key for BTC price. Bitcoin remains stuck between $57K-73K and he anticipates consolidation to continue this week.
Derivatives traders are mainly bearish on Bitcoin. BTC options have a max pain at $55,000, as explained in detail by CoinGape. The implied volume (IV) in all terms has remained low, but signs of reversal has appeared under with confidence as the SEC permanently closed Ethereum investigation.
Total Bitcoin futures open interests retraced again from $36 billion, likely eyeing the $60,000 mark again. The futures trading volumes are dropping continuously for a week.
Technical and on-chain analyst Ali Martinez revealed that MVRV extreme deviation price band metric (+0.5σ) at $67,890 shows a possible correction toward the mean pricing band at $54,930.
Also Read: Are Solana, Cardano, Polygon Commodities As US SEC Ends Ethereum Investigation?
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
