#BTCNextMove
The recent decline in Bitcoin (BTC) and other major cryptocurrencies can be attributed to several factors:
Federal Reserve’s Rate Cuts: The Federal Reserve recently announced rate cuts, which might seem positive at first. However, the Fed also indicated that inflation and unemployment are expected to rise more than anticipated in 20251. This has led investors to sell off risk assets, including cryptocurrencies.
Profit Booking: On-chain data shows that many Bitcoin holders, especially those who have held BTC for 90 to 365 days, are booking profits as the price reached above $100,0002.
Market Sentiment: The overall market sentiment has turned cautious. Traders are liquidating their positions, leading to a broader sell-off in the crypto market2.
Speculative Cycle: The recent bull run in cryptocurrencies was driven by speculation and momentum. As the year ends, the fear of missing out (FOMO) that fueled this rally is diminishing1.
These factors combined have created a bearish environment for Bitcoin and other major cryptocurrencies.