Here’s Why Crypto Market Is Crashing Today as Bitcoin Price Dips Below $64K

Bitcoin price dipped below $64,000 again after crashing 3% today. The crypto market opened the week with optimism, but that faded fast. Ethereum is also down 3%, now trading below $1,750.

The macro-driven price drop forced the closure of over-leveraged long positions. Bitcoin had $141.64 million in liquidations over 24 hours, with longs accounting for 69% of the total. That selling pressure amplified the initial decline.

We reported earlier today that Bitcoin price is down because of the Fed meeting yesterday. But let us dig into it more to understand what actually happened.

The Fed Meeting That Shook Markets

The Kobeissi Letter summed it up nicely. Here is the summary of Fed Chair Kevin Warsh’s first statement:

1. Shorter Fed policy statement is intended to “give you the facts”
2. Forward guidance in Fed statement “not well-suited” to current policy state
3. Establishes new “independent task forces” in 5 key areas
4. Task forces will propose next steps including changes to the Summary of Economic Projections
5. The Fed will maintain its 2% inflation objective
6. Fed policy appears restrictive for housing, but not financial markets

The market is dropping for one key reason: we will have far less information going forward.

During the press conference, Warsh announced that the Fed has “dropped” forward guidance. He even hinted that the “dot plot” could be changed or eliminated, along with all forms of Fed communication such as the policy statement and press conferences.

In other words, the market will now have less Fed outlook, which means more uncertainty.

On top of this, the five new “task forces” established by Warsh were said to have grand objectives with minimal guidance on what to expect. As markets have repeatedly proven, uncertainty and volatility go hand-in-hand. The new era of Fed policy will come with more volatility.

There was one piece of good crypto news today. The US and Iran signed a deal to end the war, which the crypto market had been waiting for. That should have been a bullish catalyst.

But the Fed news overshadowed everything. The reduction in geopolitical uncertainty was not enough to offset the new monetary policy uncertainty. Markets hate uncertainty. And Warsh just delivered a truckload of it.

Santiment: Whales Are Accumulating – Is That Bullish?

Santiment reported that the amount of Bitcoin held by whales with at least 1,000 BTC has rebounded to 7.17 million BTC. These key stakeholders have not held this much since March 14. They now make up 35.82% of available supply. There are 2,044 such addresses with at least 1,000 BTC.

This is bullish on the surface. Whale accumulation usually signals confidence in higher prices over the medium to long term. When the largest holders are adding to their stacks during a dip, it often indicates they see value at current levels.

However, whale accumulation does not guarantee an immediate bounce. It is a long-term signal. In the short term, macro forces like the Fed decision can overpower on-chain data. The whales are buying the dip, but the market is still digesting Warsh’s new policy framework.

Technical Levels to Watch

The market is testing a critical technical support level at $2.2 trillion total crypto market cap, which aligns with the 78.6% Fibonacci retracement from its recent high. The short-term path depends on whether this level holds. The next major macro catalyst will be the release of the Fed’s preferred PCE inflation data.

What it means: Holding $2.2 trillion could signal that immediate selling pressure is exhausted, leading to a range-bound market. A decisive break below opens the path toward the yearly low of $2.1 trillion.

Watch for: Price action around the $2.2 trillion level and the market’s reaction to the next inflation print. Sustained positive ETF flows would also be a key signal of renewed institutional demand.

Read also: Kiyosaki Predicts $35,000 Gold by 2035, Explains Why You Need Silver and Bitcoin Too

Short-Term Bitcoin and Etheruem Price Predictions

Bitcoin (BTC): The immediate support is near $63,500. If that holds, a relief bounce toward $66,000 is possible. A break below $63,500 opens the door to $62,000 and then the $60,000 psychological level.

Ethereum (ETH): ETH is holding above $1,700 for now. Support is at $1,680. A break below that could send ETH to $1,600. Resistance is at $1,800.

The Fed’s new policy approach introduces more uncertainty, which means more volatility in the weeks ahead. Until the market gets clarity on Warsh’s task forces and the future of Fed communications, risk assets will remain under pressure.

FAQs

Why is the crypto market down today

Fed Chair Kevin Warsh announced the Fed is dropping forward guidance and hinted at eliminating the dot plot. Less Fed communication means more uncertainty, which triggered a risk-off move in markets.

What was the Iran deal and why didn’t it help crypto

The US and Iran signed a deal to end the war. But the Fed news overshadowed it. Markets care more about monetary policy uncertainty than geopolitical resolution right now.

Is crypto and Bitcoin whale accumulation a bullish sign

Yes, but it is a long-term signal. Whales accumulating at $60K-$65K indicates they see value. But in the short term, macro forces can overpower on-chain data.