Bitcoin Markets Still Spooked by Possible Strategy BTC Sales: Analysis

Bitcoin circled $65,000 after downside BTC price pressure into the FOMC meeting as analysis warned over the impact of Strategy potentially selling more BTC in the future.

Bitcoin (BTC) bounced off week-to-date lows into Wednesday’s Wall Street open as corporate sell pressure returned to the radar.

Data from TradingView showed BTC/USD heading higher after dropping to $64,500 on Bitstamp.

BTC/USD one-hour chart. Source: Cointelegraph/ TradingView

The pair saw ongoing weakness ahead of the US Federal Reserve’s interest-rate meeting, scheduled for 2pm Eastern time. As Cointelegraph reported , such events tend to trigger BTC price downside.

In its latest Market Color analysis, trading company QCP Capital said that the BTC price outlook was clouded by more than just the Fed.

“While broader markets continue to trade higher on optimism across multiple fronts, BTC remains stuck below the 66k level,” it wrote.

Source: Cointelegraph

QCP explained that contingency measures by technology company Strategy had “extended its runway” in terms of liquidity after selling 32 BTC in May , but markets remained wary of potential problems further down the line.

“In the short term, we think this overhang may continue to prevent Bitcoin from fully participating in the broader macro optimism. However, as Strategy continues to issue shares and lengthen its runway, that optimism may eventually catch up to BTC,” it continued.

On the Fed, meanwhile, QCP joined those putting the focus on new Fed chair, Kevin Warsh.

Related: Can BTC rebound to $69K as oil price plunges? Five things to know in Bitcoin this week

“Warsh takes the stage at his first Fed meeting as Chair today,” it stressed.

QCP described a “difficult opening act” for Warsh, who should balance inflationary trends with pressure to cut rates from president Donald Trump.

“Today’s meeting will therefore be about more than the rate decision,” it continued, referring to outgoing chair, Jerome Powell.

Fed target rate probabilities for Wednesday FOMC meeting (screenshot). Source: CME Group

Data from CME Group’s FedWatch Tool showed no odds of the Federal Open Market Committee (FOMC) cutting rates.

Andre Dragosch, European head of research at crypto asset manager Bitwise, noted that markets increasingly expected a rate hike by the end of the year — a clear would-be headwind for crypto and risk assets.

“IMO still a lot of monetary policy uncertainty around the question whether Warsh is rather hawkish or dovish amid the rise in inflation,” he wrote in a post on X.

Fed target rate probabilities (screenshot). Source: CME Group

Cointelegraph is committed to providing independent, high-quality journalism across the crypto, blockchain, AI, and fintech industries.

All news, reviews, and analyses are produced with full journalistic independence and integrity. For more details on our standards and processes, please read our Editorial Policy .

新闻图片