Bitcoin (BTC) price tumbles 3% as investors turn cautious ahead of US Fed meeting

Bitcoin (BTC) wobbled on Tuesday triggering cascading liquidation across the derivatives markets. Having held steady around the $84,000 level

Bitcoin (BTC) dropped 3% on Tuesday as investors grew cautious ahead of the U.S. Fed meeting, triggering a series of liquidations in the derivatives market.

After a quiet start to the week, at least in terms of volatility, Bitcoin (BTC) finally began to wobble on Tuesday. Having held relatively steady around the $84,000 level since the start of the week, supported by bullish tailwinds from events like Microstrategy listing $500 million worth of shares for sale to fund further BTC purchases.

However, ahead of the U.S. Fed's interest rate decision on Wednesday, investors were already growing cautious, setting the stage for a small selloff.

CryptoQuant analysts: Bitcoin bear market could last 6 to 12 months

CryptoQuant analysts are now predicting a six-to-twelve-month bear market for Bitcoin, setting the cryptocurrency community abuzz with anticipation.

The firm’s CEO Ki Young Ju first hinted at the bleak outlook.

“#Bitcoin bull cycle is over, expecting 6–12 months of bearish or sideways price action,” Ju said on Monday.

In response to this comment, another Cryptoquant analyst Maartun highlighted a past trading pattern where long-term holders dumped 827,783 BTC in December 2024.

This traction occurred just before the correction phase began after Trump’s inauguration in January. A repeat of the pattern could see BTC struggle for momentum in the months ahead.

Optimism from MicroStrategy’s announcement of a $500 million share sale to boost its BTC reserves, had helped keep Bitcoin prices afloat near $84,000 until the sharp reversal on Tuesday.

CryptoQuant’s CEO Aarun stated bluntly, “Mass sales by long-term holders signal a major shift, not a minor blip.”

As the U.S. Federal Reserve's interest rate decision approaches on Wednesday, uncertainty is mounting. Investors are now grappling with the possibility that this decline could mark the beginning of a sustained bearish period, rather than a brief downturn.