CoinCircle.com reported:
Minutes from the June 11-12 Federal Open Market Committee (FOMC) meeting revealed unanimous agreement among policymakers on price stability but no consensus on how many months of sustained inflation data are needed before considering rate cuts. While some officials advocate patience before action, others suggest ongoing discussions on rate hikes.
Bitcoin breached its support level of $62,000 early Wednesday, hitting a low of $59,515, but bullish momentum pushed it back above $60,000. Nonetheless, bearish pressure persisted, and this morning Bitcoin revisited the $58,000 mark, marking a nearly 5% decline in 24 hours.
As Bitcoin dropped below $60,000, altcoins saw exacerbated declines, setting new lows one after another, reflecting widespread bearish sentiment.
Federal Reserve officials hinted at reluctance to cut rates prematurely. Regarding monetary policy outlook, the latest minutes indicated slower progress in lowering inflation compared to expectations from December. They emphasized that unless more convincing data emerges, lowering the federal funds rate target range would be inappropriate.
The minutes also noted, “Some participants pointed out that if inflation remains elevated or further rises, the target range for the federal funds rate may need to be raised,” while “some participants argued that monetary policy should be prepared to respond to unexpected economic weakness.”
Due to rising inflation undermining Fed confidence in rate cuts, some policymakers emphasized closely monitoring signs of labor market fatigue, suggesting a delay in rate cuts at the upcoming meeting later this month.
The June meeting minutes indicated the committee’s move towards accommodative policies but refrained from overcoming hurdles to make a decision.
Is it a normal pullback or a bearish market shift?
With Bitcoin testing the lower end of its volatility range since late February, momentum seems to favor the bears, raising concerns that Bitcoin could drop to the $40,000 range. However, such concerns may be exaggerated, merely amplifying a typical Fear, Uncertainty, and Doubt (FUD) cycle.
The recent rally to $63,800 lacked a breakthrough of upper resistance levels, prompting continued retracement. It’s advised to maintain ammunition and not exceed 50% position until opportunities arise, as short-term rebounds validate profit-taking strategies.
Bitcoin appears to have bottomed out, merely retracing recent downtrends before potentially resuming its upward trajectory.
Despite retail traders selling tokens amidst FUD-induced weakness, large whales remain optimistic, with over 16.17 million BTC accumulated across more than ten whale wallets, reaching historic highs. Increased purchasing power among Tether and USD Coin holders could truly unlock the gates for a crypto bull market.
As previously discussed, the delay in Fed rate cuts and expectations of only one cut this year have impacted the crypto market similarly to events like the Silicon Valley Bank collapse and Binance FUD. Thus, Bitcoin is likely to consolidate in the $60,000-$64,000 and $66,000-$70,000 ranges.
Recent gains peaked around $63,800 without surpassing upper resistance levels, leading to continued consolidation. Stay cautious and keep firepower ready; opportunities will emerge once the dust settles.
Yesterday’s ADP non-farm payroll data, initial claims, and PMI reports favored Bitcoin despite geopolitical pressures and intermittent rate cuts.
Stay tuned for the 20:30 release of non-farm payroll data tomorrow night; more news regarding geopolitical issues is expected next week.
The fundamental shift in altcoin markets during this bull run has been significant, yet the broader market remains resilient. With most holdings in altcoins, this nauseating altcoin market has dampened bullish sentiment. This period mirrors the whale accumulation seen around Bitcoin’s $20,000 mark in 2020, signaling the start of a major bull market phase.
The second half of this bull market will likely see more positive developments, including the arrival of ETH’s ETF and increased capital inflows, surpassing the first half. Holding spot positions in non-inflationary tokens should prove resilient.
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