Before the FED’s interest rate decision, there has been a significant drop in both Bitcoin and altcoins, leading to a loss of $185 million. Analyst Michael van de Poppe warned that the decline in Bitcoin could continue to levels around $64,000 – $65,000.
Bitcoin and the cryptocurrency market experienced a decline at the start of the day due to the anticipation of interest rate cuts by the FED, along with increased political uncertainties in Europe and outflows in spot BTC ETFs. Bitcoin dropped by over 3 percent in the last 24 hours, reaching $67,000, while Ethereum, the largest altcoin, fell to $3,500.
Concerns about the FED’s ability to maintain high interest rates for an extended period have heightened selling pressure, with analysts initially expecting a maximum of two interest rate cuts by the end of 2024. However, discussions are now circulating that even September may be too soon for an interest rate cut.
Uncertainties in the USA, coupled with negative macroeconomic data, have decreased investor interest in riskier assets like Bitcoin, leading to a negative impact on prices.
The decline in Bitcoin and altcoins led to the liquidation of leveraged positions totaling $185.3 million in the last 24 hours, with the majority consisting of long positions. Despite this bloodbath in the cryptocurrency market, it presents an opportunity for investors to buy at lower prices.
Analyst Michael van de Poppe suggested that the decline in Bitcoin may continue, with potential tests at the $64,000 – $65,000 level before the market starts to rise again. He highlighted that similar price movements have occurred in the past before events like the FOMC meeting and CPI data.
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