Bitcoin Price Analysis: BTC Dips To $65,000 As Risk Aversion And Hawkish FOMC Minutes Pressure Risk Assets
Bitcoin (BTC) briefly dipped to sub-$66,000 levels after the latest Federal Open Market Committee meeting minutes struck a hawkish tone, further pressuring risk assets. BTC dipped to a low of $65,722 on Thursday before regaining momentum and reclaiming the $67,000 mark. The flagship cryptocurrency is trading around $67,801, up over 1% in the past 24 hours.
Policymakers warned that while inflation had cooled, progress towards the Federal Reserve’s 2% target may be “slow and uneven.” They also warned that the risk of inflation remaining persistently above the Fed’s target “was meaningful.” This likely means more rate cuts are not imminent, and interest rate hikes cannot be ruled out. Meanwhile, spot Bitcoin ETFs racked up a third consecutive day of outflows, shedding $165.8 million on Thursday.
White House Favors Limited Stablecoin Rewards
The White House has urged bankers to allow limited stablecoin rewards that won’t threaten existing deposits. If bankers sign off on the proposal, it will be included in the next draft of the market structure bill. According to sources, the White House stated during a working session to find common ground on stablecoin rewards that certain rewards programs would stay in the next draft of the crypto market structure bill. Banking industry representatives at the meeting were actively working on the language, with the White House set to circulate an updated draft for circulation.
Bankers and crypto executives have met thrice to iron out differences over the topic of stablecoin rewards. Banking representatives are against allowing stablecoin rewards. However, the White House negotiation team, led by President Donald Trump’s crypto advisor Patrick Witt, has made it clear that some rewards must be allowed for certain transactions and activities. The banking industry is worried that stablecoin rewards will undermine their business model, which depends on customers making interest-bearing deposits. Blockchain Association CEO Summer Mersinger stated,
“Today’s meeting at the White House was a constructive step forward in resolving outstanding issues related to rewards and keeping market structure legislation on track.”
Google Search Volume For “Bitcoin To Zero” Surges
Google search volume for the phrase “Bitcoin going to zero” has surged to its highest level since the FTX collapse in November 2022. The sharp increase aligns with Bitcoin’s latest downturn, which saw the flagship cryptocurrency plunge to a low of $60,000. The Bitcoin Fear & Greed Index is also displaying a reading of 9, indicating extreme fear, a level previously seen during the Terra ecosystem and FTX collapse.
Crypto intelligence platform Perception analyzed the data from over 650 media sources and revealed key differences between present investor concerns and those in 2022. According to platform founder Fernando Nickolic, investor concerns in 2022 were driven by events such as the cascading failures of centralized lenders and the collapse of FTX, one of the industry’s largest exchanges. However, today’s investor concerns are largely driven by “macro fears and being amplified by a single bearish voice.”
Nikolic believes Bloomberg’s Mike McGlone is driving the “Bitcoin to zero” narrative, describing him as a one-man content machine during the ongoing cycle. McGlone claimed that Bitcoin could fall to $10,000 and that markets were heading for a 2008-style crash.
BitDeer Shares Take Hit After $300M Debt Offering
BitDeer Technologies Group shares plunged 17% after the firm announced a $300 million convertible senior note offering. The Bitcoin mining and artificial intelligence firm said it plans to offer a “principal amount” of $300 million in convertible senior notes, with an option to purchase an additional $45 million in a private placement. This is BitDeer’s second convertible note offering after a $150 million offering in April. The April offering triggered an 18% drop in share prices. Convertible senior notes are loans that investors can convert into shares of the company’s common stock. Holders have priority over other debt holders in the event of a bankruptcy.
Spot Bitcoin ETFs Still Retain $53B In Net Inflows Despite Recent Outflows
US spot Bitcoin ETFs have registered substantial outflows in recent sessions. However, Bloomberg ETF analyst Eric Balchunas believes the bigger picture tells a different story. Balchunas noted that cumulative net inflows into Bitcoin reached $63 billion in October and currently sit at $53 billion, despite months of heavy redemptions.
“That’s NET NET +$53b in only two years.”
The figure is significantly higher than Bloomberg’s own predictions, which called for inflows of between $5 billion and $15 billion over the same period. According to Balchunas, recent redemptions don’t highlight the bigger picture. Despite Bitcoin’s recent downturn, institutional money has remained, highlighting conviction and suggesting that many institutional investors are holding for the long term, not panic selling.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) has recovered after dropping to a low of $65,722 late on Thursday. The flagship cryptocurrency reclaimed the $67,000 mark and moved to its current level of $67,760, up over 1% in the past 24 hours. While recent rallies have been short-lived, a key indicator is predicting an explosive price move either way.
Bitcoin analyst Dorkchicken noted that BTC’s Bollinger Bands are currently at their tightest recorded level. The analyst pointed out that such conditions have typically led to bullish breakouts, with the only downtrend occurring in 2022. Bollinger Bands are used to measure price volatility, and extreme compressions like the current one often lead to a sharp rally. On the other hand, Bitcoin trader Nunya Bizniz highlighted an approaching death cross between the 50- and 200-period simple moving average (SMA) on the three-day chart. The pattern has preceded downturns of around 50%, aligning closely with final capitulation phases. A similar scenario could see Bitcoin drop to a bottom of around $33,000 between March and August.
The flagship cryptocurrency attempted a move past $70,000 over the weekend, reaching an intraday high of $70,531 on Saturday before being rejected yet again. Bulls successfully defended the lower end of their trading range through the week. However, a look at the options markets suggests traders are worried, as professional traders took measures to avoid downside price exposure. Professional traders are paying a 13% premium for downside protection as Bitcoin struggles to build momentum and maintain its position above $66,000. According to market experts, traders are betting on a retest of the $60,000 level.
Bitcoin (BTC) started the previous week in the red, registering a marginal decline to $70,101. It slipped below $70,000 on Tuesday, falling 1.85% to $68,803. Selling pressure intensified on Wednesday as BTC fell 2.59% to $67,024. The flagship cryptocurrency faced volatility on Thursday as buyers and sellers struggled to establish control. Sellers ultimately gained the upper hand as the price fell 1.22% to $66,208. BTC recovered on Friday despite the overwhelming selling pressure, rising nearly 4% to $68,812.
Source: TradingView
Price action was mixed over the weekend as BTC rose 1.42% on Saturday to reclaim $70,000. However, it returned to bearish territory on Sunday, dropping 1.43% to $68,792. Volatility persisted on Monday as buyers and sellers struggled to establish control. BTC ultimately registered a marginal increase to $68,858. Selling pressure returned on Tuesday as the price fell 2.02% to $67,466. Sellers retained control on Wednesday as BTC dropped 1.55% to $66,419. The price recovered on Thursday, rising nearly 1% to $66,972. The flagship cryptocurrency is up almost 2% during the ongoing session, trading around $68,218.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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