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Analyst Calls Bitcoin Slip Below $68,000 a “Scam Dump,” Here’s Why

Bitcoin's latest price decline may present a buying opportunity as experienced market researcher labels it a "scam dump."

Bitcoin Interest Drop

Bitcoin (BTC) has started the new week on a bearish momentum, slipping below $68,000 in the hours leading up to press time. This development has created market panic, as opposed to just a week ago when the cryptocurrency looked on course to hit a new all-time high.

Amid the current decline, however, a widely followed market researcher with the nickname Gumshoe has spotted a pattern that points to a possible market reversal as soon as the dust settles.

Bitcoin’s drop has been attributed to an upcoming meeting of The Federal Open Market Committee (FOMC). At the meeting, which is expected to take place between June 11 and 12, the U.S. monetary policy decision maker is expected to decide against lowering interest rates, keeping the range between 5.25% and 5.50% as it has for almost a year.

Nonetheless, market participants had leaned toward the FOMC lowering the rate, which would signal that it had begun winning the war against inflation and enable capital to flow out of low-risk assets into high-risk ones, such as stocks and cryptocurrencies. With such a favorable decision not expected, at least in the meantime, the market has dropped significantly, with Bitcoin even hovering around $67,000 at the time of writing.

Bitcoin Drop a “Scam Pump”

Regardless of the outcome of the upcoming FOMC meeting, the Bitcoin decline in the past 24-48 hours has mirrored a pattern since the recent FOMC gathering. Precisely, the cryptocurrency has seen a 10% drawdown on each date that the FOMC has held a meeting this year. On each occasion, though, the price has bounced back following a decision by the U.S. monetary policy regulatory.

It remains to be seen whether or not the market will follow the already-established pattern in the coming days. However, historical patters tend to repeat, especially in the crypto markets.

Looking beyond the short term, many experienced market participants still expect Bitcoin to end the year in grand style. Some expect prices to enter the six-digit range before the end of the year, and even more bullish investors like Robert Kiyosaki expect Bitcoin to cross $350,000 in the next two months.

Wilfred Michael

Wilfred Michael is a highly experienced cryptocurrency journo. He has spent more than five years covering this exciting new technological space, and relishes the opportunity to play a role in driving what he considers to be the future of finance.