Key Points
- Bitcoin’s [BTC] losses extended to the $67K region due to investors’ concerns about the Fed decision.
- Despite the short-term bearish sentiment, trading firms suggest potential for a bullish trend.
Bitcoin’s [BTC] losses have extended to the $67K region. This is a result of investors’ concerns regarding the impending decision from the Federal Reserve.
Impact on BTC ETFs
The bearish sentiment is also reflected in BTC ETFs. These products broke a month-long streak of inflows following a stronger US Jobs report on the 7th of June.
The BTC’s dip has hit a weekly low, retesting a short-term demand of $66.8K—$67.92K. The question now is whether the short-term support above $67K will hold post-FOMC or if sellers will overwhelm it.
Bitcoin Predictions and Market Sentiment
Despite weakening buying pressure, capital inflows into Bitcoin were still slightly above average. This is indicated by the Chaikin Money Flow (CMF).
The $67K level has prevented further BTC plunge since mid-May. However, a hawkish Fed decision could tip sellers to break below the support.
Crypto trading firm QCP Capital suggests a bullish trend, noting an increase in bullish bets (Call options) over bearish bets (Put options) on the derivatives market.
The leading crypto options firm, Deribit, also supports this short-term bullish stance. However, a hawkish Fed could dent the bullish thesis and potentially lower BTC to $64K or range lows.
