Bitcoin Plummets, Wipes Out $134M in Longs Ahead of Fed Meeting

Bitcoin (BTC) prices dropped sharply on Tuesday, briefly falling to an intraday low of $62,684 before recovering to around $63,600. This sell-off wiped out $134 million in Bitcoin longs and a total of $515 million across the crypto market.

The Federal Reserve's upcoming policy meeting and core Personal Consumption Expenditures (PCE) price index data could have significant implications for the cryptocurrency's direction. According to Mike McCluskey, co-founder of TX and former Fidelity executive, Federal Reserve Chair Kevin Warsh's press conference will provide key clues for market watchers.

McCluskey noted that a Fed hold decision with dovish tone, strong AI capital expenditure guidance, and constructive PCE data could push Bitcoin towards $70,000. On the other hand, if either number surprises to the upside or earnings disappointments occur, the cryptocurrency may drop to the $58,000 to $60,000 range.