Bitcoin (BTC), the world’s leading cryptocurrency, is struggling to maintain its value, recently dipping below $65,500 and hitting an intraday low of $64,100. The overall cryptocurrency market has seen a significant decline, with a 2.50% drop in the global market cap, now standing at $2.37 trillion. This bearish trend is driven by several factors, including the US Federal Reserve’s hawkish stance and substantial outflows from major Bitcoin ETFs like Fidelity’s FBTC and Grayscale’s GBTC.
Whales Selling $1.2 Billion BTC
In the past two weeks, Bitcoin whales have sold over $1.2 billion worth of BTC, according to CryptoQuant data. This massive sell-off by large Bitcoin holders indicates a lack of renewed buying interest, contributing to the downward pressure on Bitcoin’s price. Analysts noted that traders are not increasing their Bitcoin holdings, and demand from major holders remains weak. Additionally, it is speculated that crypto miners might be shifting their focus to the rapidly growing AI sector, selling their Bitcoin rewards instead of holding onto them.
Impact of US Economic Data
The US dollar is under pressure due to weaker retail sales and easing inflation data, raising market expectations for Federal Reserve rate cuts. Despite the Fed’s indication of only one rate hike this year, investors anticipate two hikes in 2024. Weaker US economic data, such as disappointing retail sales and declining inflation, suggest a slowing economy, reinforcing the expectation that the Fed might lower borrowing costs sooner than anticipated. This uncertainty is causing subdued and range-bound price action in the Bitcoin market.
Spot Bitcoin ETF Outflows
Recent exits from spot Bitcoin ETFs, including Fidelity’s FBTC and Grayscale’s GBTC, have totaled $152.42 million, adding significant downward pressure on Bitcoin and the broader cryptocurrency market. Fidelity’s ETF saw the largest exit of $83 million, followed by Grayscale with $62 million. This trend, coupled with broader market declines, has raised concerns of a new bearish phase in cryptocurrencies. Altcoins have also experienced significant losses, with their market value declining from over $760 billion to $603 billion since March.
Optimistic Forecasts Amid Market Volatility
Despite recent market volatility, Binance CEO Richard Teng remains optimistic about Bitcoin’s future, predicting it will surpass $80,000 by the end of 2024, with even greater gains expected in 2025. He highlighted a unique market cycle where Bitcoin led, followed by meme coins, unlike previous cycles. Recent declines to around $66,000 were influenced by the Federal Reserve’s hawkish stance, causing significant outflows from crypto Exchange Traded Products (ETPs) totaling $600 million last week.
Bitcoin Price Prediction
Currently trading at $65,500, Bitcoin (BTC/USD) is facing resistance and support levels that suggest a bearish outlook. Key price levels to watch include a pivot point at $65,700, with immediate resistance at $66,800, $67,800, and $68,500, and support at $64,200, $63,200, and $62,300. Technical indicators show a Relative Strength Index (RSI) at 50 and a 50-day Exponential Moving Average (EMA) at $65,900, supporting the potential for a downtrend if Bitcoin remains below $65,700.
Wiener AI: The AI Meme Coin with Serious Potential
Wiener AI (WAI), a new AI-powered meme coin with a playful sausage dog theme, is attracting significant investor interest. Beyond its novelty, WAI offers advanced AI trading tools and has already raised nearly $6 million in its presale. The rising popularity of AI, particularly following Nvidia’s stellar earnings, is expected to further fuel demand for WAI. The coin also offers substantial passive income opportunities, with 20% of the total supply allocated for staking rewards, promising an impressive 396% APY. Prominent crypto analyst Michael Wrubel has identified WAI as one of his top picks for 2024. The presale price of WAI is currently $0.00072, with an expected increase soon, presenting an opportunity for early investors to achieve significant gains.
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