Although the Fed implemented a widely expected 25 basis point rate cut earlier this month, its forecast of just two rate cuts in 2025 fell short of market expectations of three or four cuts. This cautious outlook dampened investor optimism.
Fed Chairman Jerome Powell added to the unease by stating that the central bank had no plans to store Bitcoin. “We are not allowed to own Bitcoin,” Powell said at a press conference. “This is a matter for Congress, but we are not seeking to change the law at the Fed.”
Cryptocurrency tracker
These remarks, combined with the Fed’s stance, weighed heavily on market sentiment, pushing Bitcoin lower. The cryptocurrency, which had been buoyed by optimism about reduced regulatory interference, saw its rally reverse.Read also: Trump’s “Made in USA” Bitcoin is an impossible promise to keep
At 10:29 IST, Bitcoin was trading at $93,099, down 1.9%, with an intraday low of $92,882. Meanwhile, Ethereum was trading flat at $3,384. “Bitcoin has lost critical support at $94,000 and is likely heading towards $92,000 before it can rebound. The market has turned bearish with a flash crash likely to generate the volumes needed to eventually surpass $100,000. Such a crash will provide a good opportunity to ‘buy the dip’ ahead of an anticipated bullish first quarter of 2025,” said Vikram Subburaj, CEO of Giottus. Edul Patel, CEO of Mudrex, said: “Bitcoin is currently trading below $93,200 Despite the weekend pullback, BTC remained above its 200-day moving average, showing strong buying interest at the moment. lower levels Additionally, the Relative Strength Index (RSI) is currently at 42, indicating that BTC is neither overbought nor oversold. BTC’s next resistance stands at 96. $600 while support remains at the previous low of $92,800.”
Other major cryptocurrencies also saw declines, including XRP (5%), BNB (2.5%), Solana (2.3%), Dogecoin (2.2%), Cardano (2%), Tron (1%), Avalanche (3.2%). Chain Link (3.2%) and Shiba Inu (3%).
“Most altcoins are in the red today, Ethereum alone is holding its range at $3,400. If a flash crash occurs, altcoins will bleed against Bitcoin first,” Subburaj said.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
