• Bitcoin dominance continued to rally upward despite the heightened bearish sentiments.
• On-chain analysis data provided by Glassnode shows Bitcoin investors have increased accumulation of freshly minted coins.

After hiking interest rates for 10 consecutive times, the United States Federal Reserve announced a pause at 5.25 percent on Wednesday. The Fed Chair Jerome Powell announced during the FOMC press conference that the commission is very committed to bringing down inflation to two percent. With the United States debt ceiling recently raised from around $31.4 trillion, the Fed is now working at putting the US dollar as the global reserve currency.

This is after more countries led by Russia, and China continues to ditch the dollar for international payments among other cross-border transactions. Already, African countries are pushing to use local currencies to settle for businesses within their jurisdictions. Moreover, countries are finding no reason to use the United States dollar to settle for business activities that do not involve the greenback.

Bitcoin Market Outlook

After the Fed announced the interest rates remain unchanged on Wednesday, Bitcoin price turned bearish, dropping below $25k for the first time since early March this year. Bitcoin investors have, however, been accumulating more coins in anticipation of the upcoming bull market. Moreover, the crypto market has been identified to respect a four-year cycle triggered by the Bitcoin halving. 

According to on-chain data provided by Glassnode, Bitcoin holders with less than 100 coins – popularly referred to as Shrimp, Crabs, and Fish – increased their BTC accumulation from freshly minted coins at a rate of 248 percent. Similarly, shark holders with Bitcoin accounts of more than 100 coins but less than 1k units increased their holdings by 38 percent in the recent past.

With Bitcoin price at risk of falling further in the coming days, the prior enthusiasm of hitting $40k amid the bear market rally has significantly faded. For instance, popular crypto analyst Kaleo on Twitter (@CryptoKaleo) told his 591k followers that his Bitcoin price prediction of $40k during the bear market rally was wrong. As a result, the analyst expects Bitcoin price to continue in a bearish outlook with a range bound between $20K – $30K through the next halving.

interestingly, Bitcoin dominance continued to rally above key resistance levels and currently stands around 49.16 percent. Consequently, the altcoin season, which was previously touted to take place after Bitcoin’s rally seems to have vanished into thin air. Moreover, investors have been fleeing even the stablecoins market as depicted by Wednesday’s Tether USDT slight de-pegging.

Bigger Picture 

Arguably, the crypto market is experiencing heightened sell pressure following the recent legal charges against Binance and Coinbase Global by the SEC for allegedly listing unregistered securities. Nonetheless, the fact that several other major jurisdictions – including Europe, Hong Kong, and Singapore – have adopted friendly crypto regulations, investors remain bullish on the long-term prospects.