Bitcoin Miners Accelerate Selling Ahead of FOMC Meeting, Pushing BTC Price Towards Potential $62,500 Low

As the financial markets brace for the forthcoming Federal Open Market Committee (FOMC) meeting, bitcoin has experienced a notable downturn, exacerbated by increased selling activity among its miners. The current trading value of Bitcoin stands at approximately $67,150, marking a 1.4% decline, with its market capitalization hovering around $1.33 trillion.

Research led by Julio Moreno, the Head of Research at CryptoQuant, has unveiled a significant uptick in Bitcoin miner capitulation. Data from Monday revealed that miners offloaded around 1,190 Bitcoin, representing the most substantial daily selling volume since the end of March. Interestingly, these sales were primarily conducted through over-the-counter (OTC) transactions, allowing for substantial trades without the immediate impact on market prices. The volume of Bitcoin moving to OTC desks has seen a remarkable increase, with a surge of 53,000 btc this month alone, marking a new annual high.

The shift of Bitcoin to OTC desks is indicative of miners possibly looking to liquidate more of their holdings, possibly due to apprehensions about future price declines or an urgent need for liquidity. Following the recent Bitcoin halving, numerous mining entities and individual miners have expressed concerns over the sustainability of their operations, signaling a potential exit from the sector.

Prominent Bitcoin analyst Willy Woo has pointed out that the market might be on the verge of further declines, with the potential of Bitcoin’s price falling to around $62,750. This prediction comes in light of recent liquidations which might trigger additional downward momentum, especially if speculative positions continue to be cleared out. Woo emphasized the need to purge the market of speculative futures bets, commonly referred to as ‘degen’ open interest, before any significant recovery can take place.

Bitcoin’s price trajectory has been somewhat volatile since March, fluctuating between $60,700 and $71,750. This marks the fourth instance where Bitcoin has faced rejection at the higher end of this trading range. According to The Scalping Pro, a critical support level exists near the mid-range mark of $65,000, which is pivotal for Bitcoin to sustain to prevent further losses.

The cryptocurrency landscape is currently navigating through turbulent waters, with miner capitulation and market liquidations painting a cautious picture for the near term. As stakeholders and investors keenly observe these developments, the anticipation around the upcoming FOMC meeting adds an additional layer of suspense to the market’s direction. Whether Bitcoin can weather this storm and emerge with renewed vigor remains a closely watched narrative within the financial and cryptocurrency communities.