Top 5 Reasons Why Bitcoin Price Sell Pressure Mounting Ahead of FOMC

Key Insights:

• Bitcoin price tumbles as volatility and uncertainty massively rise amid the escalation in the Israel-Iran conflict and FOMC jitters.
• Glassnode data revealed seasoned Bitcoin holders have stepped back, while new holders are driving market sell pressure.
• BTC price fell as it tumbled below $106K and Willy Woo claimed Bitcoin price entered its late bull market phase.

Bitcoin price volatility and uncertainty increased massively amid the Israel-Iran conflict, macro events, and technical weakness. BTC price witnessed a sudden intraday price movement as high as $109K and a fall below key $106K support many times in the last few days.

Below are 5 key reasons turning bullish sentiment among traders to bearish. Meanwhile, the Crypto Fear & Greed Index shows ‘Greed’ in the crypto market rising from 61 to 68 as traders await FOMC meeting and Fed Chair Jerome Powell’s comments on Wednesday.

Israel-Iran Conflict Worsens

US President Donald Trump denied reports of reaching out to Iran for peace talks. He also concluded that reports suggesting otherwise “highly fabricated, fake news.”

The worsening geopolitical crisis in the Middle East has prompted Bitcoin price to massive volatility and uncertainty. It falling prices has created a crash-like situation in the crypto market.

Israel Defense Forces on June 17 said they completed several extensive strikes on military targets of the Iranian regime in western Iran. These included surface-to-surface missile storage sites, launch infrastructure, surface-to-air missile launchers, and UAV storage sites.

Meanwhile, Iran has retaliated against Israel’s strikes on military targets, with the conflict reaching to fifth day.

US FOMC and Powell Speech Jitters

While the FOMC meeting on Wednesday is likely to convene with no change in interest rates, markets will closely watch for any forward guidance on the path of monetary policy.

At the time of writing, CME FedWatch indicated traders expect two rate cuts in September and October. The probability of the Fed interest rate cut in September increased to 57% and 45% in October.

Nick Timiraos, chief economics correspondent at The Wall Street Journal, said:

FOMC meeting will be followed by Fed Chair Jerome Powell speech on the monetary policy amid the impact of tariffs.

On-Chain Data Signals Sell Pressure

Glassnode reported on June 17 that last week primary profit takers were BTC wallets that held BTC for more than 12 months. However, the trend has flipped with 6-12 month holders now selling their Bitcoin holdings.

Notably, 6–12 month holders alone saw $904 million in realized profit — the second-highest daily profit YTD.

Meanwhile, realized profit for 12-month holders was just $324 million. This indicates that seasoned Bitcoin holders have stepped back, and new holders were driving market sell pressure.

Bitcoin Price Enters Late Phase of Bull Market

Popular Bitcoin analyst Willy Woo claimed that the Risk Model indicated Bitcoin price has entered its late bull market phase. The model measures drops in BTC liquidity.

However, he still expected more Bitcoin price upside, adding that a BTC bear market will come once global macro markets turn.

Bitcoin Price Breaks Support Again

Bitcoin’s breakout above $106,000 didn’t hold, and that could mean more than just a failed rally. Analysts such as 10x Research analyst Markus Thielen even gave $100,437 as the next BTC support level to watch in case of a deeper correction.

At the time of writing, Bitcoin price was trading at $105,480, down nearly 2% in the last 24 hours. The 24-hour low and high were $105,486 and $108,915, respectively. Furthermore, trading volume has increased by 25% in the last 24 hours.

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