Bitcoin Stalls as Traders Book Profits Amid Jerome Powell Succession Talks

The Dip of Bitcoin on Tuesday has put the upward process of the digital active act, at least for the time being.

The move came then traders tried to make a profit in the midst of mixed monetary signals and division around the possible replacement of the Federal Reserve chairman Jerome Powell.

Although data on the chains suggest that taking a profit is the primary motivation, sticky inflation remains a considerable point point.

The largest crypto in the world is traded at $ 117,250, a decrease of 4.5% compared to his Monday of all time after Monday’s losses, according to Coetecko’s data.

Bitcoin’s drop falls together with a 14,000 BTC -Spike Change inflow According to Cryptoquant’s Head of Research on Tuesday, Julio Moreno.

That is generally a meaningful sign that traders lock profit after a significant increase in the price of an active one, because they want to sell excess amounts to exchanges, that’s how thinking.

“Bitcoin Exchange inflow enriches the most recent all-time high yesterday,” said Moreno on X. “” Higher entry of the exchange usually precedes price volatility. “

The dip also came in the midst of the release of the figures from the US consumer price index of June. Although the lecture was in line with the expectations of the analysts, the data show a jump of 0.3 percentage points of 2.4% in June last year to 2.7% from Tuesday.

Higher inflation reduces the chance of a speed reduction in the short term, so that the loan costs are kept high and put pressure on risk-to-assets, such as the S&P 500 index or crypto.

An increase in inflation also strengthens the Federal Reserve chairman Jerome Powell’s position to keep rates higher for longer, a point of discussion among Republicans and US President Donald Trump.

“There is a formal process that already starts,” said Finance Minister Scott Bessent on Tuesday with regard to Powell’s term of office. The current term of Powell as chairman of the Federal Reserve will expire in May 2026.

While the short -term prospect shows that traders are skittish, Moreno told Decrypt“I don’t think that’s the top.” He believes that a more Dovish Fed chair could arise, which would probably insist on tariff reductions.

That decision would be a “positive” blessing for crypto, Moreno added.

Holders in the short term have an average profit of around 10%, according to the on-chain Data-Analysis platform Santiment.

Based on the platform’s research, a reach of 10% to 20% is called the “danger zone” and he has preceded price corrections historically, because traders want to hold on to further profit instead of risking the disadvantage.

Bitcoin fell more than 8% of $ 109,000 after the market value of 30 days to realized value that was repeatedly above 10% in the last week of May.