Bitcoin Price News: Why BTC Is Falling After Kevin Warsh’s First Fed Meeting

Bitcoin dropped 2% in the last day to $64,438.76. That is a little worse than the overall crypto market, which fell 1.01% over the same stretch.

The dip comes as traders process a tougher stance from the Federal Reserve under new Chair Kevin Warsh. That has put pressure on risky assets across the board. The Bitcoin price and the Nasdaq-100 are now moving almost in lockstep, their correlation hit 95.7% over the past week. That tells you macro expectations are running the show right now.

On top of that, the market got hit with a wave of forced selling. Over $68.5 million in Bitcoin positions got wiped out in the last 24 hours, and nearly three-quarters of that came from long traders. That cascade of liquidations piled on more selling pressure and made the swings even bigger.

Bitcoin Faces Pressure From Strategy Concerns Despite Positive Macro News

One of the biggest talking points in the market is Strategy and the possibility that the company could eventually sell some of its Bitcoin holdings to meet future dividend obligations tied to its convertible notes. Despite broader risk assets responding positively to the U.S.-Iran memorandum, Bitcoin failed to keep pace, with traders focusing on this potential source of future supply.

The concern matters because Strategy remains one of the largest corporate Bitcoin holders. Any discussion about future sales creates uncertainty around supply dynamics, even if no sale is imminent. That has kept many buyers cautious during rallies.

Adding to the mixed picture, Strategy’s STRC perpetual preferred stock closed at $91.79, well below its $100 anchor price. The implied yield has climbed to about 12.6%. That means investors want more payback for taking on risk. It is not a direct sell signal for Bitcoin, but it does show people are getting more cautious when it comes to corporate products tied to the token.

SEC Tokenized Stock Plans and BlackRock’s New Bitcoin ETF Draw Attention

There was also encouraging news from the regulatory front. Reports indicate the SEC is preparing an innovation exemption that could allow blockchain-based financial products, including tokenized stocks, to operate under a testing framework. Coinbase is expected to be among the first firms positioned to benefit if the exemption moves forward.

Also, BlackRock has launched the iShares Bitcoin Premium Income ETF (BITA), a new Bitcoin fund designed to generate income through covered-call strategies. The product holds Bitcoin and shares of IBIT, then sells call options against roughly 25% to 35% of its exposure. BlackRock is targeting annual yields in the mid-to-high teens, with monthly distributions funded by option premiums.

For the Bitcoin price, BITA introduces a new institutional investment route. The fund could create additional demand through IBIT purchases, though its covered-call structure also adds a steady supply of Bitcoin-linked options to the market. If assets under management grow substantially, BITA could influence both ETF flows and Bitcoin volatility patterns.

Related Bitcoin News: Bitcoin Price News: Strategy Adds More BTC as Markets React to Volatility and Macro Pressure

Bitcoin Volume Data Raises Questions About Rally Quality

We had a look at the latest Bitcoin volume data shared by market analyst Ardi, and the chart presents an interesting divergence. Spot cumulative delta volume has continued trending lower and is close to cycle lows, even as Bitcoin attempted to recover from the June selloff.

Meanwhile, perpetual futures volume has been moving higher. The chart shows traders increasing leveraged exposure despite weak spot participation. This creates a volume imbalance similar to conditions that developed before Bitcoin peaked near $83,000 and later dropped roughly 30%.

The key issue is that leverage-driven rallies tend to be less durable than rallies supported by strong spot accumulation. Futures traders can quickly unwind positions when sentiment changes, creating liquidation cascades similar to what the market witnessed over the past day.

What’s Next for the Bitcoin Price as Leverage Dominates the Market?

The Bitcoin price remains caught between conflicting forces. Macro conditions have become less supportive following the Fed meeting, and concerns surrounding Strategy continue to weigh on sentiment. 

Also, regulatory developments and new institutional products such as BITA provide constructive developments for the broader crypto ecosystem.

For now, keep an eye on volume. If spot buyers start stepping up alongside futures activity, Bitcoin could build a stronger base for another leg up. But if leverage is still doing all the work, expect more wild swings and more liquidations, in either direction.

Frequently Asked Questions

Is this a good time to buy Bitcoin

Santiment notes that historically, some of crypto’s strongest advances occur when sentiment recovers from fear but remains below euphoric levels

. That describes the current setup. But macro risks remain, so caution is warranted.

Is gold safer than BTC

Duke University’s Campbell Harvey investigated whether bitcoin is a true competitor to gold as a “safe haven” asset. While both have been considered by investors as stores of value and potential hedges against market stress, his analysis revealed that gold continues to maintain a more stable role in times of crisis.

How much Bitcoin does Strategy own

After the latest acquisition, Strategy holds 846,842 BTC, making it the largest corporate Bitcoin holder.

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