CryptoNews

Bitcoin Braces for CPI, FOMC as Exchanges Shed $1.2B of BTC in a Day

Bitcoin Braces for CPI, FOMC as Exchanges Shed $1.2B of BTC in a Day
Key Points
  • Bitcoin experiences $1.2 billion in withdrawals from exchanges in a single day.
  • BTC price steadies around $67,500 amidst anticipation of CPI and FOMC data.
  • Long liquidations total over $50 million as market prepares for macroeconomic events.
  • Exchange balances hit their lowest levels in seven years, signaling strong behind-the-scenes demand.

Bitcoin’s market activity has been marked by significant movements as traders brace for key macroeconomic updates from the United States. Despite price stabilization around $67,500, the crypto market has seen massive withdrawals from exchanges, indicating robust behind-the-scenes demand for BTC.

Traders Not Surprised by Weak BTC Price Behavior

Bitcoin’s price fell to $66,000 on June 11, triggering a cascade of long liquidations totaling over $50 million. This drop aligns with a pattern typically observed before Federal Reserve meetings on interest rates. The latest meeting coincides with the release of the May Consumer Price Index (CPI), adding to the market’s anticipation.

Market sentiment remains cautious as BTC/USD continues to trade within a range. Popular trader Follis highlighted the cyclical nature of BTC price movements, noting that predictions of imminent breakouts have been premature.

Exchange Withdrawals Signal Strong Demand

Despite the subdued price action, onchain data reveals a significant trend of Bitcoin withdrawals from exchanges. Coinbase Pro, the largest U.S. exchange, saw its BTC balance drop by 14,420 BTC ($972 million) within 24 hours. This continues a trend of decreasing exchange balances, which have reached their lowest levels in seven years.

On June 11, the net transfer volume from exchanges was 17,967 BTC ($1.21 billion), according to onchain analytics platform Glassnode. This substantial withdrawal activity underscores a strong appetite for holding Bitcoin off exchanges, suggesting that investors may be preparing for potential price movements triggered by upcoming economic data.

Market Dynamics and Historical Patterns

As Bitcoin steadies around key resistance levels below all-time highs, liquidity data from CoinGlass indicates building liquidity around $65,700 on the downside and $67,700 as the main hurdle to overcome higher up. This suggests that while there is significant support at lower levels, breaking through current resistance remains challenging.

Historical patterns further support the view that Bitcoin may not be ready for a breakout this early in the post-halving period. Analyst Rekt Capital compared the current BTC price cycle to previous ones, noting that Bitcoin typically takes more time to establish a clear upward trajectory following a halving event.

Nitesh
I work with brands that operate with a healthy dose of impatience to scale fast, connect with the culture, and steal back attention from their competitors.

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