Bitcoin Drops Ahead of FOMC Meeting — What’s Next?

Key Notes

  • The US Federal Open Market Committee (FOMC) interest rate decision is expected after the June 17 to 18 meeting.
  • In anticipation, Bitcoin price dropped below $107,000 and has remained there for a few days.
  • Analysts think that the next crypto boom may come from emerging tokens like Bitcoin Hyper.

The price of Bitcoin

BTC $105 120

24h volatility: 2.4%

Market cap: $2.09 T

Vol. 24h: $34.72 B

, the flagship cryptocurrency, has remained below the $107,000 threshold for a couple of days, with a supply overhang limiting further upside. On one hand, traders are looking forward to the next US Federal Open Market Committee (FOMC) interest rate decision, which will be announced after the June 18 meeting.

SLR, Instead of an Interest Rate Cut, for Bitcoin Rally

Renowned crypto analyst Michael van de Poppe forecasts that Bitcoin price may drop below $105,000. Should this happen, it could lead to a liquidation cascade, mirroring pre-FOMC risk-off trends. This is usually the case where market volatility hits the rock due to the anticipation of interest rate decisions.

Investors’ repositioning causes such volatility to avoid losing out in the market. Bitcoin price is at $105,602.45, which corresponds to a 1.03% dip within the last 24 hours, according to CoinMarketCap data.

It is hardly surprising that traders’ attention is drawn to the US FOMC decision, especially after last week’s Consumer Price Index (CPI) report. In May, the market witnessed rising inflation and a slowdown in growth, just like it did the previous month. Economic uncertainty is still growing, thereby putting traders on edge.

According to data on the CME FedWatch Tool, there seems to be a high certainty that there will be no interest rate cut this month. Even Polymarket had presented the odds of a 98% chance of no change in June and 84% in July. Still, several crypto analysts have concerns.

His statement suggested that speculations are shifting to more subtle liquidity sources. The SLR, or Supplementary Leverage Ratio, is a regulatory capital requirement restricting banks’ exposure to certain assets. However, there is more intense concern about Treasuries.

If the pressure on this rule lessens, banks can now absorb more debt, which could increase market liquidity without directly resorting to quantitative easing (QE). However, there is still concern about interest rate policy, especially with Fed Chair Jerome Powell resisting President Donald Trump’s political pressure.

Related article: Bitcoin Golden Cross Shows A BTC Price Revival Coming SoonMarket analyst Mister Crypto noted that the US may be too late in cutting interest rates again. However, he sees crypto hitting a bull run once it starts. The current state of hesitation from the Fed is termed as ultimately political.

Bitcoin Hyper in the Spotlight, Don’t Miss Out!

Amid BTC price struggles, Bitcoin Hyper is gaining traction. This project is touted as the first Bitcoin Layer-2 chain, focusing on scalability and speed. With its offering to the community, Bitcoin Hyper presale is currently live.

Notably, Bitcoin Hyper finally unlocks fast and cheap BTC transactions, from payments, memecoins, to Decentralized Applications (dApps).

Details from the Bitcoin Hyper website show that the crypto presale has raised to $1,347,102.53, and users have less than two days before the price increases from $0.011925.

Current Presale Stats:

  • Current price: $0.011925
  • Amount raised so far: $1.3 million
  • Ticker: HYPER

Interested parties can make purchases using either a card or crypto assets. Bitcoin Hyper may mark a new era for scalability and security within the BTC blockchain. In terms of its tokenomics, about 25% of the tokens have been designated for business development and community activation.

Also, 20% is allocated to viral marketing, 15% to the community, 10% to exchange listings, and 30% to development and improvement. The HYPER token is one asset futuristic investors need to keep an eye on.

nextDisclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
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