Bitcoin (BTC) Dips Below $104K Ahead of Fed’s Rate Decision

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As a seasoned analyst with over two decades of market experience under my belt, I’ve seen countless market fluctuations that would make a rubber band blush. Today’s Bitcoin drop to $103,353 is just another day in the life of a cryptocurrency enthusiast.

Earlier today, the cost of the primary digital currency, Bitcoin, plunged to a record-low of $103,353 within the current trading day.

At the moment, it’s being transacted for approximately $103,735, representing a decrease of 2.7%. This follows its unprecedented surge to an all-time peak of $108,135 on Tuesday.

The cryptocurrency is seeing increasing volatility ahead of the Federal Reserve’s rate hike. 

Investors on Polymarket anticipate a high probability, approximately 97%, that the Federal Reserve will reduce interest rates by a quarter of a percent. Consequently, if the Fed chooses to maintain current rates instead, this move could generate seismic impacts throughout financial markets, potentially leading to a substantial drop in Bitcoin’s value.

Today, well-known trader Josh Olszewicz expressed his viewpoint that Bitcoin bulls need to hold the $100,000 mark as a crucial barrier. According to him, Bitcoin’s daily closing, after reaching a new record high, was less impressive than expected. He suggests that due to the upcoming Federal Reserve rate decision and Jerome Powell’s speech, Bitcoin is currently in a cautious phase.

Currently, the trader indicates that it’s improbable for Bitcoin to plummet down to the $86,000 mark at this point in time.

Regardless of the substantial funds poured into U.S.-based Bitcoin Exchange Traded Funds (ETFs), the value of Bitcoin has a tough time climbing upwards as of late. Specifically on Tuesday, these ETFs successfully attracted investments amounting to $733 million.

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2024-12-18 10:59