After a short rally, the cryptocurrency market has experienced a significant crash. Bitcoin’s (BTC) price has dropped to $111,500. According to CoinGecko data, Bitcoin (BTC) has fallen 0.7% in the last 24 hoursThe price of bitcoin has increased by 4.5% over the past week and 1.7% in comparison to the month before. BTC has risen 76.8% in 14-day charts despite the sharp correction.
Why has the Crypto Market fallen?
Bitcoin (BTC’s) decline comes in spite of a rate reduction earlier this month. Federal Reserve interest rates were slashed by 25 basis point, causing a market rally that lasted only a few days before this week’s correction. Federal Reserve Chairman Jerome Powell gave a speech on yesterday in which he said that concerns over stubborn inflation are outweighed by the weakness of the labor market. Fed cut rates in response to the development.
Powell went on to say: “Near-term risks to inflation are tilted to the upside and risks to employment to the downside — a challenging situation. Two-sided risks mean that there is no risk-free path.“
Investor sentiment may have been affected by the uncertain course. It is possible that Bitcoin (BTC), and the entire crypto market, have been affected by the Fed’s more conservative stance.
Bitcoin to fall below $100,000?
According to CoinGlass data, the crypto market faced $292.30 million worth of liquidations In the past 24 hours. Bitcoin (BTC), if the liquidations are to continue, could continue on its downward trend.
Bitcoin’s price is currently around $112,000, which has been a level of support. BTC could consolidate at current levels. BTC’s price could fall to as low as $100,000 if it dips below the $110,000 mark.
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Bitcoin (BTC), could recover in the coming weeks. There is a chance that Bitcoin (BTC) will recover over the coming weeks. CME FedWatch tool The 91/9% probability of a rate reduction in October is reflected by the hints. A second interest rate reduction could spark a rally across the market. This could lead to Bitcoin (BTC’s) reaching a record high.
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Source: watcher.guru
