Bitcoin circled $65,000 after downside BTC price pressure into the FOMC meeting as analysis warned over the impact of Strategy potentially selling more BTC in the future.
Bitcoin (BTC) bounced off week-to-date lows into Wednesday’s Wall Street open as corporate sell pressure returned to the radar.
Data from TradingView showed BTC/USD heading higher after dropping to $64,500 on Bitstamp.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
The pair saw ongoing weakness ahead of the US Federal Reserve’s interest-rate meeting, scheduled for 2pm Eastern time. As Cointelegraph reported, such events tend to trigger BTC price downside.
In its latest Market Color analysis, trading company QCP Capital said that the BTC price outlook was clouded by more than just the Fed.
“While broader markets continue to trade higher on optimism across multiple fronts, BTC remains stuck below the 66k level,” it wrote.
QCP explained that contingency measures by technology company Strategy had “extended its runway” in terms of liquidity after selling 32 BTC in May, but markets remained wary of potential problems further down the line.
“In the short term, we think this overhang may continue to prevent Bitcoin from fully participating in the broader macro optimism. However, as Strategy continues to issue shares and lengthen its runway, that optimism may eventually catch up to BTC,” it continued.
On the Fed, meanwhile, QCP joined those putting the focus on new Fed chair, Kevin Warsh.
Related: Can BTC rebound to $69K as oil price plunges? Five things to know in Bitcoin this week
“Warsh takes the stage at his first Fed meeting as Chair today,” it stressed.
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