Bitcoin Price Prediction: Hedge Funds Reduce Holdings; BTC Under Pressure at $65,000
Bitcoin (BTC), the world’s oldest and most valued cryptocurrency, remained under pressure around $65,100, hitting an intraday low of $64,700. Cryptocurrency hedge funds cut their Bitcoin holdings to the lowest level since October 2020, intensifying selling pressure.
Major altcoins, including Ethereum (ETH), Dogecoin (DOGE), Ripple (XRP), Solana (SOL), and Litecoin (LTC), also declined, with the Market Fear & Greed Index at 52 (Neutral). Uncertainty over Federal Reserve rate cuts, with only one cut projected this year instead of three, has further impacted Bitcoin.
Traders are watching upcoming US economic data for further direction.
On the US front, the dollar has strengthened despite the uncertainty surrounding the Federal Reserve’s interest rate decisions. This has led to Bitcoin trading within a narrow range as traders await clearer signals.
Initially, the Fed projected three rate cuts for this year, but now expects just one, boosting US Treasury bond yields and the dollar.
Additionally, lackluster US Retail Sales data—Retail Sales m/m rose by only 0.1% in May, below the expected 0.3%, and Core Retail Sales m/m fell by 0.1%—points to sluggish economic activity.
US retail sales barely rose in May, bolstering economists' expectations that the Federal Reserve could start cutting interest rates in September https://t.co/akUL2oaXzs pic.twitter.com/fqLfegbi2V
— Reuters Business (@ReutersBiz) June 18, 2024
Weak consumer and producer prices further fuel expectations that the Fed may ease monetary policy soon. The latest data showed US consumer prices rising just 0.1% in May, while producer prices were unchanged.
This has created a mixed outlook for Bitcoin, as the reduced likelihood of aggressive rate cuts limits its potential
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