Bitcoin Price Decline

Bitcoin price slipped on Thursday, extending a recent decline, despite a rally on Wall Street after the Federal Reserve suggested a possible September interest rate cut.

Concerns Over Mass Sale Event

Sentiment in crypto markets was hindered by fears of a mass sale event by the U.S. government, which was expected to mobilize around $2 billion worth of Bitcoin earlier this week.

Political Impact on Crypto

Promises from Republican presidential nominee Donald Trump to support crypto markets also diminished after a Bloomberg poll indicated Democratic frontrunner Kamala Harris overtook Trump in key battleground states.

Bitcoin fell 2% in the past 24 hours, trading at $64,782.80 by 08:55 ET (12:55 GMT).

Federal Reserve’s Influence

The Fed maintained interest rates, with Chair Jerome Powell mentioning a potential rate cut in September depending on favorable economic data. His remarks led to a strong rally on Wall Street.

Optimism regarding the Fed, combined with positive earnings in the tech sector, kept traders focused on stocks despite a positive outlook for crypto linked to lower U.S. interest rates, which typically supports speculative markets.

Global Market Concerns

Globally, risk appetite decreased. Japanese markets fell after the Bank of Japan raised interest rates and hinted at future increases due to economic resilience, while the yen surged, pushing Bitcoin to a near three-week low against the currency. Increased geopolitical tensions in the Middle East also impacted risk sentiment.

Accumulation by Large Holders

In July, large Bitcoin holders increased their holdings at the fastest rate since October 2014, accumulating over 84,000 BTC worth $5.4 billion. This reflected confidence amid price volatility, with acquisitions taking place during early July dips and later recoveries. July ended with a 3% gain in BTC.

Analysts are becoming optimistic, expecting that the ongoing consolidation between $50,000 and $70,000 may lead to a bullish breakout.

Potential Rate Cuts

Jerome Powell indicated interest rates could be cut as early as September, dependent on supportive economic data. ING analysts predict a shift from restrictive monetary policy in the coming months.

Broader Crypto Market Trends

Broader crypto markets followed Bitcoin’s decline, with XRP down 5.7% after reversing gains fueled by unverified speculation about a Ripple settlement with the SEC. Ether fell 3.6% to $3,196.25, while SOL and ADA dropped 6% and 2.5%, respectively. Among meme tokens, DOGE decreased by 3.9%.