On June 18, Bitcoin (BTC) and traditional markets faced another day of downward pressure comments from the United States Federal Reserve about the possibility of raising interest rates sooner than expected has led to a spike in the price of the U.S. dollar at the expense of risk assets and treasury notes.
The Fed doesn’t deserve all the bla, however, as concerns about a further downturn for BTC have been building for weeks with much of the discussion focused on the approaching death-cross and what it means for the future of Bitcoin.
— Mīss ÇRypTö (@infoNataliya) June 17, 2021
Today’s selling pulled Bitcoin price below the crucial $36,000 support, leading traders to forecast $32,500 as the next stop before Bitcoin revisits the swing low at $30,000.
These technical factors combined with negative headlines in the news such as Chinese authorities shutting down cryptocurrency miners or the most recent “rug pull” on the Iron Finance protocol that saw cryptocurrency proponent and billionaire investor Mark Cuban lose money have traders feeling apprehensive about the current dip in Bitcoin price.
As a result of these concerns, the crypto Fear & Greed Index has dropped to 25, registering extreme fear and continuing the trend of the past month.
Inflows to exchanges spiked before the sell-off
Data from the on-chain data analysis firm CryptoQuant shows that BTC netflows to exchanges provided some warning to observant traders ahead of this week’s drop from $41,000 to $36,000. A spike in BTC inflows to exchanges occurred on June 15 when BTC price hit $41,300 and then proceeded to decline by 15% over the next three days.
One observant analyst has pointed out that whale activity on the Gemini…