Key Takeaways
- Bitcoin's price fell 4.5%, dropping below $67,000.
- The decline followed a $2 billion transfer from a US government wallet.
- Traders anticipate choppy conditions until the Federal Reserve meeting.
Bitcoin’s price fell below $67,000 on July 29, reversing an upward trend that had seen it reach $70,000 for the first time in nearly two months.
Bitcoin faced significant selling pressure after the Wall Street opening, dropping 4.5%. Data from Cointelegraph Markets Pro and TradingView showed BTC/USD peaking at $70,016 on Bitstamp before declining to $66,839.
The decline coincided with a $2 billion Bitcoin transfer from a US government-associated wallet. Trader Skew suggested this move likely precedes an over-the-counter (OTC) auction, potentially impacting the supply and price.
Skew, referencing data from crypto intelligence firm Arkham, noted:
Transfer went to a fresh wallet by looks of it which typically is the precursor of OTC related auctions.
Charles Edwards from Capriole Investments commented on the recurring state distributions affecting Bitcoin prices, saying:
Just when you think all the excess supply dumping is over, the current admin finds another way to screw us.
Additionally, CoinGlass data highlighted that liquidity above $70,000 was left untouched as the price dipped to lower levels. Popular trader Josh Rager warned of potential lower highs, and CrypNuevo suggested choppy market conditions until the Federal Reserve’s interest rate meeting on July 31.
CrypNuevo, indicating cautious trading ahead of the Federal Reserve’s decision, commented:
Choppy price action within the orange box until FOMC on Wednesday? Yes, that’s what it seems to be happening so far.
