As a seasoned crypto investor with over a decade of experience navigating market fluctuations, I find myself observing yet another rollercoaster ride in the cryptocurrency sphere. The recent selloff has resulted in a staggering $80 billion loss, and while it’s never pleasant to witness such dips, it’s part of the game we play.
On Monday, a significant drop in the crypto market led to a loss of approximately $80 billion for investors, causing the total market capitalization to decrease from $2.1 trillion to $2.03 trillion. This market downturn coincided with a sudden price plunge for both Bitcoin and Ethereum, which occurred following another alleged assassination attempt on Republican presidential candidate Donald Trump at his golf club in Florida on Sunday.
Additionally, it’s worth noting that the Crypto Fear & Greed Index has decreased from 51 (indicating neutral sentiment) to 39 (reflecting fear), in a single day. This decline is echoed in various altcoins like Solana (SOL), XRP, Cardano (ADA), and Dogecoin (DOGE), all of which have seen a drop similar to that experienced by Bitcoin and Ethereum. Nevertheless, traders remain optimistic, with their attention primarily on the FOMC meeting and Jerome Powell’s decision scheduled for Wednesday.
Why Is Bitcoin Price Dropping?
The cost of Bitcoin dropped recently as investors grew wary in anticipation of the upcoming shift in monetary policy by the Federal Reserve this week. The financial sector is abuzz with predictions of interest rate decreases for the first time since 2020, with whispers of a potential 50 basis point reduction.
Based on the CME FedWatch tool, there’s approximately a 61% likelihood that the Federal Reserve will reduce interest rates by 0.5 percentage points and a 39% chance of a 0.25 percentage point reduction following the FOMC meeting. Furthermore, the data suggests a potential total of 1.25 percentage point Fed rate cuts for this year.
The individual behind PlanB’s bitcoin stock-to-flow (S2F) model recently posted a chart on platform X. He cautioned that miners are finding it challenging following the Bitcoin halving, with many gradually selling off their holdings. He emphasized that a Bitcoin price double the current one is needed to ignite another bullish run, which has been a typical trend in Bitcoin’s history after a halving event.
According to the analysis by Credible Crypto, Bitcoin’s price has pulled back precisely from the optimal $61,000 – $62,000 resistance area. At present, the price remains above the significant $58,500 mark, which is essential to avert additional declines towards lower levels.
According to Coinglass data, about $35 million worth of Bitcoin was liquidated, with approximately $30 million coming from long positions. The Bitcoin price dropped to a 24-hour low of $58,112 as traders chose to sell when the price dipped below its 50-day moving average (represented by the blue line).
As an analyst, I’ve noticed that the price has shown a significant reversal, moving from the 0.618 Fibonacci retracement level down to the 0.5 Fibonacci retracement level in the daily timeframe. Currently, I anticipate the price to hover around the $59,000 mark until the upcoming FOMC meeting. If a 50 bps rate cut is announced, it could potentially improve market sentiment, but the momentum of the prices remains likely to remain volatile.
Why Ethereum Price Tumbled Below $2,300?
An inactive “diamond-handed” Ethereum whale has resurfaced after an eight-year hiatus, offloading its Ethereum (ETH) holdings. Meanwhile, other large investors have shown pessimism towards Ethereum following the recent sell-off by the Ethereum Foundation and Vitalik Buterin.
According to well-known analyst Ali Martinez, there’s a possibility for Ethereum (ETH) prices to fall more if it can’t maintain its crucial support levels between $2,290 and $2,360. Interestingly, approximately 1.9 million accounts possess nearly 52 million ETH within this range. If the price breaks below this demand area, it could trigger a cascade of selling, potentially pushing the value down to around $1,800.
ETH price tumbled 6% in the past 24 hours, with the price currently trading at $2,308. The 24-hour low and high are $0.643 and $0.664, respectively.
The decrease in Bitcoin’s and Ethereum’s prices has led other cryptocurrencies like Solana (SOL), Ripple (XRP), Dogecoin (DOGE), and Cardano (ADA) to also drop in value. The market is now concentrating solely on the FOMC meeting for additional guidance regarding the future trend.
Read More
- LUNC PREDICTION. LUNC cryptocurrency
- SOL PREDICTION. SOL cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- BICO PREDICTION. BICO cryptocurrency
- USD COP PREDICTION
- USD CLP PREDICTION
- USD ZAR PREDICTION
- VANRY PREDICTION. VANRY cryptocurrency
- USD PHP PREDICTION
- BSW PREDICTION. BSW cryptocurrency
2024-09-16 11:40