Bitcoin Price Prediction as ETFs See Surprise Inflows – Are Whales Accumulating BTC?
Bitcoin (BTC) has struggled to halt its losing streak, trading around the $60,750 level and reaching an intra-day low of $60,752. This recent decline in Bitcoin’s price can be attributed to several factors, including significant BTC transfers by the German government and ongoing regulatory challenges faced by major crypto exchanges.
Despite these pressures, recent surprise inflows into Bitcoin ETFs have sparked discussions among investors about potential accumulation by large holders, or “whales.” These inflows could indicate a shift in market sentiment and may influence Bitcoin price predictions in the near term.
Regulatory Challenges on Binance.US and Potential BTC Price Pressure
Binance.US announced it will halt operations for Washington customers from August 20th due to regulatory pressure, joining New York, Texas, and Vermont in suspending its services. The exchange, a subsidiary of Binance.com, is under investigation for mixing funds and breaking rules, compounded by legal issues involving its CEO, Changpeng Zhao.
Recently, North Dakota and Oregon revoked its money transmitter licenses, further limiting its operations. Meanwhile, the U.S. SEC filed a lawsuit against Binance for failing to register properly and insufficient anti-money laundering measures. India also imposed fines and bans for similar violations, adding to the exchange’s regulatory problems.
These regulatory challenges and operational suspensions at Binance.US could increase uncertainty among crypto investors, potentially exerting downward pressure on BTC prices in the short term.
- Binance.US halts operations in Washington from August 20th
- Investigations and lawsuits from U.S. SEC and other regulators
- Potential downward pressure on BTC prices due to regulatory uncertainty
German Government Bitcoin Transfers on BTC Price
Recently, the German government transferred 750 Bitcoin (BTC), valued at about $46.27 million, to various destinations, including Kraken, Bitstamp, and a private wallet. This follows a week of significant BTC movements totaling around 4,250 BTC, worth approximately $271.3 million.
45 mins ago, the German Government transferred away another 750 $BTC ($46.27M), including:
• 125 $BTC to #Kraken
• 125 $BTC to #Bitstamp
• 500 $BTC to wallet “139PoPE1bK”
• 0.001 $BTC to Flow Traders (likely a test txn)In the past week, around 4,250 $BTC (~$271.3M) have… https://t.co/JV63Xsc8IC pic.twitter.com/Ezorz9egCf
— Spot On Chain (@spotonchain) June 26, 2024
The transfer of 750 BTC by the German government, along with these other movements, may have contributed to Bitcoin’s drop below $61,000.
Fed’s Hawkish Stance and Strong Dollar Impact on BTC Price
The US dollar has been gaining strength due to the Federal Reserve’s hawkish stance and higher US bond yields. At the end of the June meeting, the Fed signalled a more hawkish approach, with policymakers favouring only one interest rate hike by the end of the year.
In May, New Home Sales saw their sharpest drop since September 2022, falling 11.3% to 619,000, the lowest level since November. Despite signs of a slowing economy and easing inflation pressures, the US dollar has remained resilient. The Fed’s projection of only one rate hike in 2024 contrasts with market expectations, which anticipate a possible rate cut as early as September, potentially followed by two more cuts by year-end.
The strengthening US dollar and the Fed’s hawkish stance, coupled with minimal expected rate cuts despite economic slowdown signals, have added downward pressure on the BTC price, which dropped below $61,000.
- The US dollar gains momentum due to the Fed’s hawkish stance
- New Home Sales fell 11.3% in May, the sharpest drop since September 2022
- BTC price pressured by strong US dollar and Fed’s minimal rate hike projections
Bitcoin Price Prediction
Bitcoin (BTC/USD) is currently trading at $60,740, reflecting a slight decline of nearly 0.10%. The 4-hour chart indicates that the pivot point is set at $61,320, suggesting a bearish Bitcoin price prediction.
Immediate resistance levels are $61,320, $62,510, and $63,440. On the downside, immediate support levels are $60,620, $59,670, and $58,630.
The RSI is at 39, indicating neutral to slightly bearish sentiment. The 50-day Exponential Moving Average (EMA) is at $61,850, serving as a resistance level. Closing below the pivot point supports a downtrend continuation.
Overall, Bitcoin remains bearish below $61,320. A break above this level could shift the bias toward a bullish trend, while remaining below may drive further selling pressure.
