😱🚨The reason for Bitcoin's decline has been revealed: Why is BTC falling?
The cryptocurrency market woke up on Wednesday morning with sharp declines. The number one cryptocurrency by market capitalization fell to $ 56,550 while trading at $ 60 thousand. Why did #Bitcoin fall?
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 nervous about the possible statements that Powell will make after the decision to be announced today.
Declining ETF investments also contributed to the declines in cryptocurrencies, especially Bitcoin. In the last week, all Bitcoin ETFs have closed on the minus every day. Within a few days, there was a net outflow of more than $ 500 million from ETFs.
Fineqia research analyst Matteo Greco told Reuters: "The recent downward trend can be attributed to increased profit-taking by investors who entered the market during the crises of 2022 and 2023, 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 Dec Tue, from a macro perspective, the Fed is not expected to make any changes to interest rates, but there is a growing view among investors that the central bank may not cut interest rates at all this year and may hit interest rate sensitive assets such as cryptocurrencies, emerging market shares and bonds, and even commodities.
On the other hand, traders who are worried that the Fed will keep interest rates at a high level for longer are also evaluating the likelihood of a big move in the stock market.
The Fed will announce its interest rate decision at 18.00 tonight. Powell's press conference will be held at 18.30. Both the #Fed 's interest rate decision and Powell's press conference will be on our instant Youtube channel.
