Today, Bitcoin's price added to its losses, dropping below $117,000 and revisiting the $116,000 level. This decline is linked to several factors, including large investor actions and uncertainty regarding monetary policy.
Reasons for Bitcoin Price Drop
Galaxy Digital, one of the largest crypto investment firms, moved over $2 billion worth of Bitcoin to centralized exchanges. This movement was not idle; it involved active transfers in batches ranging from $10 to $50 million, likely aimed at liquidating positions. This caused negative market sentiment and triggered automated sell orders.
Impact of the Fed Meeting
The upcoming Federal Reserve meeting is scheduled for July 30. It is expected that interest rates will remain unchanged; however, attention is focused on Jerome Powell’s tone. If the Fed signals concerns about inflation or hints at delaying rate cuts, it could negatively impact risk assets like Bitcoin.
Technical Analysis and Price Forecast
From a technical perspective, Bitcoin price failed to break above the $120,000 resistance. If the price closes below $116,200, it may increase the likelihood of a drop to $114,000 or even $112,000. Key moment will be Jerome Powell’s comments next week, which could either support the market or deepen the decline.
The situation for Bitcoin's price remains tense, and movement towards $114,000 will be critical. The reaction to the upcoming Fed meeting will determine the market's further trend.
