Bitcoin Price Prediction as Whales Sell $1.2 Billion BTC – Will BTC Fall to $60K?

Bitcoin Price Prediction

Bitcoin (BTC), the world’s oldest and most valuable cryptocurrency, is struggling to maintain its value, staying below the $65,500 mark and hitting an intraday low of $64,100.

The global crypto market cap was $2.37 trillion, reflecting a 24-hour decline of 2.50%. This bearish trend is largely attributed to the US Federal Reserve’s hawkish stance, which has exerted significant pressure on the crypto market.

Additionally, large outflows from Bitcoin ETFs such as Fidelity’s FBTC and Grayscale’s GBTC indicate a bearish sentiment, further contributing to the downward pressure on Bitcoin’s price.

Whales Sell $1.2 Billion BTC: Impact on Bitcoin Price and Market Sentiment

Data from CryptoQuant indicates that whales have sold over $1.2 billion worth of Bitcoin in the past two weeks. These significant holders of Bitcoin show minimal signs of renewed buying interest, suggesting continued lack of upward momentum for the cryptocurrency.

Analysts noted, “Traders are not increasing their Bitcoin holdings, and demand from large holders remains weak.” Observers suggest that crypto miners might be turning their focus to the rapidly growing AI sector, selling their Bitcoin rewards instead of holding onto them.

Both the cryptocurrency and AI sectors heavily depend on powerful computing chips to operate and maintain data.

Key Points:

• Whales sold over $1.2 billion in BTC in two weeks
• Low renewed demand among long-term holders
• Crypto miners may be shifting focus to the AI sector

How US Economic Data Affects Bitcoin and the US Dollar

The broad-based US dollar remains under pressure due to weaker retail sales and easing inflation data, raising market expectations for Federal Reserve rate cuts. Despite the Fed’s more hawkish stance, indicating only one rate hike this year, investors anticipate two hikes in 2024.

Softer economic data, including disappointing retail sales and declining inflation, suggest a slowing economy, strengthening the case for the Fed to lower borrowing costs sooner than anticipated. This uncertainty over the Fed’s rate path is causing subdued and range-bound price action in the Bitcoin market.

The Commerce Department reported that US retail sales rose by 0.1% in May, slightly below the expected 0.2% increase. This softer print indicates consumer exhaustion and slowing economic activity, reinforcing the expectation that the Federal Reserve might lower borrowing costs sooner than anticipated.

• Weaker US retail sales and easing inflation data increase expectations for Fed rate cuts.
• Pressure on the US dollar causes uncertainty in the market.
• Bitcoin prices remain subdued as investors await clarity on the Fed’s future actions.

Recent exits from spot Bitcoin ETFs, notably Fidelity’s FBTC and Grayscale’s GBTC, totalling $152.42 million, have exerted significant downward pressure on Bitcoin and other cryptocurrencies.

Fidelity’s ETF saw the largest exit of $83 million, followed by Grayscale with $62 million. This trend, coupled with broader market declines, has raised concerns of a new bearish phase in cryptocurrencies.

Altcoins have also experienced significant losses, declining from over $760 billion to $603 billion since March.

Despite this, there is optimism for a potential recovery with renewed investments. The substantial exits from spot Bitcoin ETFs have intensified downward pressure on BTC and cryptocurrencies, contributing to market concerns about a potential new bearish phase.

• Exits from Fidelity and Grayscale ETFs total $152.42 million.
• Altcoins have declined significantly, from $760 billion to $603 billion since March.
• Optimism remains for potential recovery with renewed investments.

Despite recent market volatility, Binance CEO Richard Teng remains optimistic about Bitcoin’s future, predicting it will surpass $80,000 by the end of 2024, with even greater gains expected in 2025. He highlighted a unique market cycle where Bitcoin led, followed by meme coins, unlike previous cycles.

Recent declines to around $66,000 were influenced by the Federal Reserve’s hawkish stance, causing significant outflows from crypto Exchange Traded Products (ETPs) totaling $600 million last week.

Currently, Bitcoin trades below $65,500, with uncertain market direction, contrasting with mostly positive movements among altcoins, indicating 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 Prediction

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.