Bitcoin value bleeds beneath $70K as FOMC minutes loom – Invezz | USAEMALL.com

Over the past 24 hours, Bitcoin has been defined by heightened volatility, with its price oscillating between $66,724 and $68,328 as traders remained sidelined ahead of the FOMC minutes scheduled for release later today.

The total crypto market capitalisation failed to consolidate above the $2.4 trillion mark, ultimately succumbing to a wave of selling during late Asian trading hours.

This downturn suggests that market sentiment is still mired in “Extreme Fear,” as evidenced by a Crypto Fear and Greed Index reading of 12.

Aside from a handful of resilient altcoins, the broader market has been broadly sidelined or dragged lower, weighed down by a prevailing risk-off sentiment across global financial markets.

Why is Bitcoin price down today?

Bitcoin’s downward trajectory today stems from an intricate web of macroeconomic pressures that have forced investors into a defensive posture. 

Market participants are currently navigating a high-stakes environment as they await the release of the Federal Reserve’s January meeting minutes, which are expected to provide clues regarding the future path of interest rates. 

Because the crypto market has increasingly mirrored the movements of high-growth tech stocks, any hint that policymakers might delay rate cuts or maintain a restrictive stance to combat sticky inflation prompts an immediate risk-off reaction. 

This pre-emptive selling reflects a broader fear that the liquidity required to fuel digital asset rallies will remain locked away in safer, high-yielding government bonds for a while.

Simultaneously, the US Dollar Index has exerted a relentless see-saw effect on Bitcoin’s valuation following this morning’s stronger-than-expected manufacturing and housing data.

Financial markets often interpret robust economic reports as a sign that the American economy is running too hot, thereby strengthening the greenback and making dollar-denominated assets like Bitcoin more expensive and less attractive to global buyers.

Investors are currently prioritising liquidity and capital preservation, leading to a noticeable rotation out of speculative holdings and into cash. 

This trend is being further amplified by a spike in 10-year Treasury yields, which creates a significant hurdle for non-yielding assets by raising the opportunity cost of holding Bitcoin.

The technical landscape has also played a decisive role in today’s price slump, as Bitcoin continues to battle a formidable psychological barrier near the $70,000 level. 

Multiple failed attempts to breach and hold this level over the past fortnight have exhausted buyer momentum, resulting in a triple top formation that signals a lack of conviction from institutional players.

Traders who entered positions near the recent lows are now choosing to lock in modest profits rather than risk a deeper correction, effectively creating a self-imposed cap on any upward movements.

At the same time, financial disclosures from major corporate holders have also contributed to the current ceiling by highlighting the risks associated with the treasury-reserve model. 

With firms like Metaplanet reporting substantial valuation declines and others seeing their recent high-priced purchases fall into the red, the narrative of Bitcoin as a safe-haven corporate asset has faced intense scrutiny.

Meanwhile, spot Bitcoin ETF inflows have essentially dried up in the US market, with net outflows exceeding $4 billion year-to-date as institutional buy-the-dip enthusiasm seems to have reached a point of exhaustion.

So far this week, over $104 million has exited these investment products. On the weekly time frame, this marks the fifth straight week of outflows.

What’s next for Bitcoin price?

Bitcoin’s technical fate is increasingly tethered to its ability to hold the $65,700 neckline of the aforementioned triple top formation.

This specific level acts as the final line of defence for the bulls, and a decisive break below it on the 4-hour or daily charts would officially confirm the bearish pattern.

Such a breakdown would likely trigger a cascade of automated sell orders and liquidated long positions, potentially forcing a flush toward the $60,000 demand zone.

Bitcoin’s 24-hour liquidation heatmap highlights this fragility, as a cluster of high-leverage long positions is currently concentrated between $66,500 and $67,500 that are ripe for a liquidity grab if support fails.

The immediate direction of this technical setup will almost certainly be determined by the market’s reaction to the FOMC minutes.

If the Federal Reserve’s tone is perceived as hawkish, indicating that inflation remains too sticky for short-term rate cuts, the resulting spike in the US Dollar and Treasury yields will likely provide the catalyst for a breakdown.

Conversely, a dovish surprise could spark a short-squeeze, propelling the price back toward the $70,000 resistance for a fourth attempt at a breakout.

For those monitoring the charts, the $72,000 mark remains the critical overhead resistance that must be flipped into support to invalidate the current bearish bias. 

Reclaiming this zone would require a significant surge in buying volume, which has been conspicuously absent throughout February.

At the time of writing, the Bitcoin price was trading just above $67,000, with no gains on the day.

Altcoin gainers for the day

The altcoin market cap rose 5% over the past 24 hours to $1.05 trillion before parting with most of its gains late in the day and stabilising around $1 trillion at the time of writing.

Ethereum (ETH) seesawed between $1,950 and $2,050 before settling around $1,980 when writing, up roughly 1% in the daily period.

XRP (XRP) rose 1.5%, climbing closer towards the $1.5 mark, while other major cryptocurrencies such as BNB (BNB), Dogecoin (DOGE), and Cardano (ADA) posted gains within 1% each.

World Liberty Financial (WLFI) led altcoins with gains of over 26% as investors front-run the “World Liberty Forum,” an exclusive, invite-only summit held today at Mar-a-Lago.

The event has drawn massive attention due to its high-profile attendee list, which includes CEOs from Goldman Sachs and Nasdaq, as well as several US Senators. 

Stable (STABLE) followed with gains of around 14% following a massive rotation of capital into the stablecoin sector.

On-chain data revealed that weekly stablecoin inflows hit a record $102 billion this week, as investors increasingly use tokens like STABLE as a proxy safe haven asset amid broader market volatility.

Kite (KITE) gained over 12% as it solidified its position as the market leader in the booming AI agent economy and hit a new all-time high earlier today.

There’s a lot of hype around its sponsorship of ETHDenver, which is a major event in the crypto space.

Meanwhile, the project recently announced a $10,000 developer bounty for applications built on their x402 protocol, which has supported investor confidence.

Source: CoinMarketCap