Bitcoin Plunges Below $63K as Market Awaits Key Events
Bitcoin plummeted on Tuesday, briefly dipping below $63,000 and triggering a sharp sell-off that wiped out $134 million in long positions. The cryptocurrency rebounded to around $63,600 after hitting an intraday low of $62,684.
The market capitalization of Bitcoin dropped to $1.277 trillion, with the cryptocurrency experiencing nearly 2% losses on the day. This marks a 4% decline for the month so far.
Experts believe that this week's events, including the Federal Open Market Committee meeting and the release of Personal Consumption Expenditures (PCE) price index data, will have a significant impact on Bitcoin's direction. Former Fidelity executive Mike McCluskey notes that Federal Reserve Chair Kevin Warsh's press conference will be crucial in determining market sentiment.
McCluskey predicts that if PCE data shows easing inflation and GDP is near the 2.3% consensus, it could lead to a Fed hold decision with a dovish tone. This scenario could push Bitcoin towards $70,000 or higher through August. However, if either number surprises to the upside, hawkish language from Warsh could reinforce the bearish narrative, sending Bitcoin down to $58,000 to $60,000.