LIVEThe Reason for $BTC Fall Has Been Revealed: Why Is BTC Falling?
One of the most important reasons behind Bitcoin's decline is the Fed's expected interest rate decision and Fed Chairman Powell's statements. Markets are experiencing anxiety about possible statements to be made by Powell following the decision to be announced today.
Decreasing ETF investments also contributed to the decline in cryptocurrencies, especially Bitcoin. In the last week, all Bitcoin ETFs closed each day in minus. There was a net investment outflow of over $500 million from ETFs in a few days.
Speaking to Reuters, Fineqia research analyst Matteo Greco said, “The recent downward trend can be attributed to increased profit taking by investors who entered the market during the 2022 and 2023 crises, as well as by ETF investors who witnessed a significant price increase in their shares after entering the market in the first weeks of 2024.” he commented.
According to Reuters, from a macro perspective, the Fed is not expected to make any changes to interest rates, but the view among investors that the central bank may not cut interest rates at all this year and could deal a blow to interest rate-sensitive assets such as cryptocurrencies, emerging market stocks and bonds, and even commodities is taking root. .
On the other hand, it is noted that traders who are concerned that the Fed will keep interest rates at high levels for a longer time are considering the possibility of a big movement in the stock market.
The Fed will announce its interest rate decision at 21.00 this evening. Powell's press conference will be held at 21.30.
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