What is the reason for the drop in Bitcoin? 💵
The cryptocurrency market began to decline after statements from the Federal Reserve about continuing the fight against inflation. Investors were expecting a quicker rate cut, but the regulator hinted at a pause.
™ This triggered a mass outflow of funds from BTC-ETFs, reaching a record $680 million in a day.
The market drop may also have been caused by seasonal profit-taking before the end of the calendar year.
💰 BTC has risen by more than 125% over the year, which may have prompted early investors to take profits.
Next week, selling pressure is likely to ease due to the lack of landmark macroeconomic events. Christmas week is typically also positive for cryptocurrencies.