This week has been a critical week for Bitcoin and the cryptocurrency market. Because the US CPI and PPI data and the FED announced its interest rate decision.
BTC, which approached $70,000 after the positive CPI data on Wednesday, fell back to $67,000 after the FED decision.
Continuing its downward momentum, BTC started the last day of the week with a decline and is at $66,870.
Evaluating the current situation of Bitcoin, QCP Capital analysts said that a quiet summer period awaits the BTC and cryptocurrency markets.
Stating that BTC could not maintain its upward momentum after the FOMC despite the strong momentum in stocks, but struggled to recover, QCP analysts pointed to the miners for the downward momentum in Bitcoin.
Stating that Bitcoin miners sold BTC in order to continue their activities after the halving in April and that these sales put pressure on the price, analysts listed other reasons for the decline as follows:
“Bitcoin is struggling to recover post-FOMC despite strong momentum in stocks.
Why this momentum is occurring: We think this is due to BTC miners being capitulated after the halving and the price making ATH before the halving.
Additionally, Flowbank, one of the banks with which Binance has a tripartite agreement, is currently facing bankruptcy proceedings.”
Explaining what awaits the BTC and crypto markets in the coming months, analysts expect a quiet summer period.
Analysts stated that the horizontal trend will continue and pointed out that there is no clear catalyst that would direct BTC and the market up or down.
Reminding that Gensler expects the spot Ethereum ETF approval to occur at the end of the summer, analysts added that they do not expect ETFs to cause a boom in the ETH price.
*This is not investment advice.
