The debt ceiling issue has not yet had a final result, but it is also more optimistic. As for BTC, there was a decrease yesterday, who is selling causing the price of BTC to go down?
US stocks continued their fifth session with gains on all three indexes. The SP500 index has officially returned to the level of April 2022. Stock futures also increased slightly. Gold and oil both increased to 1964 USD/ounce and 72 USD/barrel.
Bitcoin yesterday had a rapid decline from a very short time to around 26,000 USD. However, the price later recovered to around 26,800 USD. Crypto market capitalization around 1.17 trillion USD.
The CME FEDWatch index changed over the past day. Although the majority of investors still think the FED will stop interest rates, the proportion of people who think the FED will continue to raise interest rates has increased significantly. The change comes because Dallas Fed President Lorie Logan said economic data to date is not enough to support a decision to hold off on raising interest rates at the June meeting. Data in the coming weeks may suggest that a pause in the increase is appropriate but we will need to wait for the next CPI and unemployment rate.
House Speaker Kevin McCarthy is optimistic that congressional negotiators can reach an agreement to raise or suspend the debt ceiling in time to hold the first vote on the issue next week.
Who is selling BTC?
DaanCrypto on Twitter said that the decline of BTC yesterday was because a funny fish sold 235 BTC (about 6.2 million USD) within a minute on Bitfinex.
Additionally, a share on CryptoQuant shows that the Poolin mining pool sent BTC for sale on Binance yesterday. This is also a contributing reason for the decline of BTC.
Recently, the selling force mainly came from BTC wallets stored for less than 6 months to take profits.
CryptoQuant data also shows that there are many whales active on exchanges since the beginning of the year. Whale activity is shown in the blue line in the chart below. This share also shows that the price of BTC is heavily supported around 26,500 USD because many BTC wallets are purchased within 1-3 months.
