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The first cryptocurrency did not stay away from the main event of the current week – the meeting of the Federal Open Market Committee (FOMC). However, the decisions taken by the regulator tripped bitcoin, which demonstrated a downward trend.
On the evening of Wednesday, June 16, the main digital asset fell to $38,100, but later regained some losses. On the morning of Thursday, June 17, the first cryptocurrency was trading near $39,200, losing 2.8% over the past day. The driver of the sharp decline in bitcoin was the results of the June meeting of the US Federal Reserve. Recall that the US regulator kept the key rate at the level of 0-0.25% per annum, and also left low interest rates until the moment when the level of employment and inflation will be near the target 2%. At the same time, the Federal Reserve extended the program of asset repurchases in the amount of $120 billion per month.
The publication of the Fed report contributed to a noticeable decline in the stock and cryptocurrency markets. To date, the capitalization of the digital asset market has decreased by 2%. Experts are afraid of further subsidence, although they record minor signs of stabilization. Experts note a long-term medium-term correction for bitcoin, which continues to increase. According to analysts, the crypto market has tested the lower limits of the long-term trend in the BTC (near the support level of $34,972) and continues to recover. On the morning of Thursday, June 17, the BTC/USD pair was trading near $39,197, trying to expand the boundaries of the current range.
The market for virtual cryptocurrencies has repeatedly tried to turn upward, acting within the short-term trend. According to experts, the possibility of breaking the upper limit of this range ($43,402) is quite achievable. However, the implementation of this plan is difficult at the moment, although in the near future it is possible.
A significant contribution to the potential upward trend of bitcoin was made by the so-called "whales" of the crypto market. They accumulated 9.11 million BTC on their accounts, i.e. 48.7% of the total cryptocurrency supply. According to current data, over the past 25 days, the "whales" have increased the reserves of the first cryptocurrency by 90,000 BTC, that is, by $3.6 billion. The last time such a concentration of bitcoin on the wallets of "whales" recorded was at the end of April 2021. At that time, the main digital asset was valued at $49,000.
At the moment, the amount controlled by the" whales " of the crypto market is $364 billion. However, the influx of cryptocurrencies to exchanges is steadily decreasing, and the number of transactions with bitcoin is approaching the figures of 2019. At the same time, the supply of BTC on the exchanges remains high, exceeding the level of December 2020. This is facilitated by the positive attitude of the majority of participants in the crypto market. Experts note a decrease in negative sentiment about the near-term prospects of bitcoin. Despite the skeptical attitude of many investors, most believe in the further growth of the first cryptocurrency.
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