Why Did Bitcoin Drop Despite Positive News? Here's the Full Breakdown:
The market is in a state of confusion and disappointment. Why did #Bitcoin take a hit despite the seemingly good news last night? Let me explain.
During a recent Federal Reserve Q&A, Chairman Jerome Powell expressed skepticism about Bitcoin's role in the financial system. He stated that neither he nor the Fed sees Bitcoin as a suitable strategic reserve asset. While Congress could technically change the laws to force the Fed to accept Bitcoin, Powell made it clear that he hopes this doesn't happen. In short, the Fed remains negative on Bitcoin and has no plans to recognize it as an official reserve asset soon.
So why can't the President step in? Think of it like this: if you were confident about a 100% win, but then two key opponents showed up, your odds would drop to 70%. Wouldn't you reconsider your strategy? This is what's happening now. Bullish Bitcoin investors are rethinking their positions due to the Fed's comments.
But why the sharp drop? The answer likely lies in market manipulation. Powell's remarks sparked uncertainty, and market whales probably used this to trigger panic selling, amplifying the decline. Understanding this dynamic can help traders manage such volatile situations.
