Bitcoin Hits Key Support – Can It Bounce Back or Is the Selloff Just Beginning?
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*Bitcoin hits a new record high but faces a sharp pullback after Fed's hawkish stance.
*A key support level breakdown puts Bitcoin at risk of further declines.
*The $92,800 to $95,500 range is crucial for Bitcoin’s potential rebound.
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Bitcoin began the week with optimism, reaching a new record high near $108,000, buoyed by positive statements from U.S. President Trump about the crypto's potential as a reserve asset. However, the mood quickly soured midweek as the Federal Reserve’s hawkish stance triggered a significant pullback in the cryptocurrency market, and Bitcoin's momentum stalled.
As traders awaited the Fed’s decision, the market had priced in a 25-basis-point rate cut, but uncertainty lingered over Jerome Powell’s speech, which ultimately revealed a more hawkish outlook.
Powell’s remarks, particularly his warning about future interest rate cuts and a rise in inflation forecasts, sent shockwaves through risk on assets, triggering a sell-off. His negative comments on Bitcoin also contributed to the decline, with investors fleeing to safer assets.
