Bitcoin Price Analysis: BTC Dips Below $113,000 As Markets Await FOMC Decision

Bitcoin’s (BTC) upward trajectory has hit a temporary roadblock as investors wait for the FOMC meeting minutes. The flagship cryptocurrency fell to a 17-day low as it plunged to $112,555 on Wednesday. 

Institutional inflows into spot Bitcoin ETFs have also cooled, with Glassnode’s Accumulation Trend Score dropping from 0.57 to 0.20, indicating weaker demand. 

Strategy Hits Four-Month Low 

Michael Saylor’s Strategy (MSTR) has dropped to its lowest level in four months as Bitcoin and crypto treasury firms registered a substantial decline. Prices dropped as Saylor stated that the company will be lowering restrictions on issuing more shares. Strategy’s stock price is down over 8% since Monday, with Bitcoin (BTC) also trading in the red since hitting an all-time high last Thursday. Saylor stated on X, 

“Strategy today announced an update to its MSTR Equity ATM Guidance to provide greater flexibility in executing our capital markets strategy.”

The update specifies that when MSTR trades below 2.5 times its net asset value (mNAV), it can tactically issue MSTR to cover debt interest, fund preferred equity dividends, and “when otherwise deemed advantageous to the company.” However, some shareholders criticised the change, arguing it was a reversal of the company’s Q2 earnings report, which only mentioned issuing shares below this level to pay debts or fund preferred equity dividends. However, others saw it as a positive development for Bitcoin, as it would potentially allow MSTR to buy more. 

The announcement had divided the community, with crypto trader Kale Abe stating, 

“He’s literally telling you straight up he’s gonna buy a… ton more BTC.”

However, another commentator who claimed to be a prior shareholder stated, 

“The head of the company said he wouldn’t sell below 2.5 mNAV, so I bought. He made this agreement with the shareholder at the live earnings release. And then he sold below mNAV 2.5.”

Bitcoin ETFs Register Almost $1 Billion In Outflows 

Spot Bitcoin and Ethereum ETFs posted significant outflows as market sentiment turned bearish and institutional interest cooled. Spot Bitcoin ETFs saw $523 million in outflows on Tuesday. Bitcoin and Ethereum ETFs have posted outflows for three consecutive days, totaling over $1.3 billion. The outflows coincide with a sharp correction in prices, which saw BTC drop to a low of $112,555. 

Fidelity led the outflows on Tuesday, with outflows of $247 million from its Fidelity Wise Origin Bitcoin Fund (FBTC) and $156 million from the Fidelity Ethereum Fund (FETH). Grayscale Investments also registered substantial outflows, with the Grayscale Bitcoin Trust ETF reporting $116 million in outflows. Meanwhile, the Grayscale Ethereum Trust registered $122 million in outflows. BlackRock’s IBIT registered 0 outflows, while ETHA recorded $6 million in outflows. 

Solo Bitcoin (BTC) Miner Hits Payout 

A solo Bitcoin miner successfully mined a Bitcoin block on Sunday and collected a 3.137 BTC reward, worth around $371,000 at the time. The miner was operating through the Solo CK Pool, a service dedicated to solo miners, and successfully mined block 910,440, collecting the standard 3.125 BTC payout and around 0.012 BTC in transaction fees. The block contained 4,913 transactions, with the fees totalling around $1,455. 

Bitcoin’s hashrate is dominated by industrial-scale mining entities, making the chances of a solo miner securing a block extremely slim. However, efficient hardware can allow even smaller players to claim block rewards. Several solo miners have mined blocks this year. One miner successfully mined a block in February, while another netted a $350,000 reward on July 4. The most recent solo block mined was on July 27, when a miner secured $373,000 in block rewards. However, Samuel Li, Chief Technology Officer at ASICKey, said solo Bitcoin mining is still a lottery, stating, 

“Solo mining is still mostly a lottery, unless you control tens of PH/s, which is realistically the bare minimum for having a measurable statistical shot at success within a reasonable time frame.”

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) has faced immense selling pressure since reaching a new all-time high last Thursday. The flagship cryptocurrency has mostly traded in the red since. It started the current week with sellers in control, falling to an intraday low of $114,703 before settling at $116,286. Selling pressure intensified on Tuesday as the price dropped nearly 3%, slipping below $113,000 to $112,856. BTC reached an intraday high of $114,42 during the ongoing session but lost momentum after reaching this level, with the price marginally down. 

Analysts believe that BTC’s current price action was “not a sign of strength.” Long positions, which are already undergoing a squeeze, added another $116 million to their liquidation tally. Meanwhile, data from CoinGlass showed bids accumulating around the $112,000 mark. Keith Alan, co-founder of trading resource Material Indicators, stated, 

“TLDR: The $107k - $110k range is coming into focus. This is not a sign of strength for $BTC. The downward pressure is palpable, but bulls are trying to find their footing.”

BTC started the previous weekend in the red, dropping nearly 1% and settling at $116,683. Sellers retained control on Saturday as the price registered a marginal decline to $116,492. However, it recovered on Sunday, rising 2.42% to cross $119,000 and settle at $119,309. BTC reached an intraday high of $122,319 on Monday as bullish sentiment intensified. Despite the positive start, it lost momentum and settled at $118,701, ultimately dropping 0.51%. The price recovered on Tuesday, rising 1.19% to cross $120,000 and settle at $120,113. Bullish sentiment intensified on Wednesday as BTC rallied, rising nearly 3% to cross $123,000 and settle at $123,365.

Source: TradingView

BTC raced to a new all-time high on Thursday, crossing $124,000 and reaching $124,533. However, it lost momentum after reaching this level and dropped over 4% to $118,389. Sellers retained control on Friday as the price fell nearly 1% and settled at $117,436. The flagship cryptocurrency steadied itself over the weekend, registering marginal increases on Saturday and Sunday to settle at $117,488. BTC plunged to an intraday low of $114,703 on Monday. However, it recovered to reclaim $116,000 and settled at $116,286, ultimately registering a 1.02% drop. Bearish sentiment intensified on Tuesday as BTC plunged nearly 3%, slipping below $113,000 and settling at $112,856. Selling pressure has persisted during the ongoing session, with BTC losing momentum after reaching an intraday high of $114,042. The price is marginally down, trading around $112,550.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.