As the cryptocurrency market changes dramatically and, Bitcoin (BTC) saw a sharp pullback that brought its price below the 70,000 mark, an area that previously served as strong support. The pull back below the level was not just a coincidence of recent news about major events shaking the market, causing BTC to lose its new bullish momentum.
Bitcoin Returns After $70,000 Loss
As i The price of Bitcoin falls below the critical threshold of $70,000, the structure of the market around the leading cryptocurrency asset has undergone a major change. Bearish sentiment is quickly spreading throughout the market due to the downturn, which has largely shifted momentum in favor of sellers.
In a send to XMilk Road, a market expert and trader, pointed out that the pullback below the $70,000 level was caused by issues related to Federal Reserve (Fed) the decision to hold prices constant. After the meeting, no cuts were made, no surprises, reinforcing the height of the long narrative.
The market had expected a rate cut in mid-2026, but the Fed extended that timeline today. However, the cryptocurrency market did not respond well to the outcome of the meeting, which caused a sudden drop in the entire sector. When the news dropped, BTC dropped from $72,400 to below $70,000, marking a 3% move that ended the week’s gains in just a few hours.
Milk Road explained the alignment between the price of Bitcoin and the main event. During periods of high prices, money becomes expensive as investors accumulate more money in bonds and cash, as well as risky assets such as crypto. Meanwhile, when prices fall, money becomes cheaper as yields are hunted. In the past, this trend has been the rocket oil for BTC.
Bitcoin’s pullback on Thursday following the Fed results served as a painful reminder to short term BTC holders that big events like these still drive the crypto market. As for long-term BTC holders, they are not new to this type of movement.
During the climbing cycle of 2022, Bitcoin fell below $30,000, but as the reduced expectations grew in late 2023, it exceeded $70,000. With the Fed’s next meeting scheduled for May 6 and 7, 2026, a similar move could occur later in the year, which could result in a rise from previous highs.
Currently, Iranian conflicts and CPI (Consumer Price Index) and PCE (Personal Consumption Expenditures) data will bury or revive the possibility of a rate cut. However, this depends on whether the rate reduction is increasing, negative, or decreasing, which is a positive sign.
Many BTC Whales appear
Investor activity has improved, especially in the middle the main ownersdespite Bitcoin’s recent sideways action. Sentiment data shows that the number of whale fund addresses holding 100 or more BTC has increased, suggesting renewed confidence among institutional investors.
In the last 3 months, there have been +753 additions whale wallet addressesrepresenting an overall increase of +3.9%. During the same period, Sentiment noted that the market value of BTC fell by more than 20.2%. According to Santiment, the continued confidence shown by key stakeholders should at least cause investors to reevaluate their theory if they truly believe that the cryptocurrency will reach zero.
Featured image from Pixabay, chart from Tradingview.com
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