Will the FOMC Drive Down the Price of Bitcoin Given That It Has Outperformed Many Traditional Assets?

The post Will the FOMC Drive Down the Price of Bitcoin Given That It Has Outperformed Many Traditional Assets? appeared first on Coinpedia Fintech News

Bitcoin has been extremely volatile in recent times, in contrast to other assets. These have been driven by central bank rate hikes, inflation, and the strengthening of the USD. However, amid the bearish drop, it managed to remain stable and gain ground against many assets. 

Although the BTC prices traded slightly higher than the previous month, still remained consolidated for 120 days since the deleveraging event in mid-June. Additionally, the market participants are establishing a probable bearish scenario, various metrics like whale transactions, long-held coins, etc. suggest that there may be several months still ahead before a full recovery. 

The on-chain indicators from Glassnode that are listed below could be the cause of star crypto’s potential recovery delay.

• The relative address Supply distribution chart manifests a massive decline of the addresses holding more than 100 BTC from 70% to 60%.

• Holders holding 100 BTC to 1000 BTC have heavily contributed to a distribution event in August while the holders holding 1000 BTC to 10,000BTC have been accumulating aggressively  

• The net whale withdrawal volumes in the recent weeks, with a net outflow from the exchanges hitting as high as 15.7K BTC which is the largest since June 2022. 

• The market participants are experiencing a decline in profit of about 50% which suggests the supply of profitability remains elevated in relation to historical analogues

In addition to all these above factors, the major contributor could be the FOMC meeting, which is underway in the next couple of hours. While increased basis points may contribute to a further slash in the Bitcoin(BTC) price lower very soon.