After Bitcoin (BTC) suffered its biggest loss since August, market experts predict that prices could fall further.
Andre Dragosch, head of European research at Bitwise, stated that Bitcoin’s depreciation may continue in the coming weeks due to uncertainty over the Fed’s interest rate policy.
Dragosch made the following statements:
“We will likely face more challenges. BTC may continue to defend support levels for some time.”
“There may be buying opportunities for Bitcoin”
Dragosch said that demand for Bitcoin is increasing and therefore prolonged price declines could create a buying opportunity for investors.
Bitwise executive urged investors to be prepared for the upcoming price drops.
Bitcoin fell 8.8% last week to $95,000, its biggest drop since August, according to TradingView and CoinDesk data.
This decline occurred after Fed Chair Jerome Powell’s statements on interest rates and Bitcoin reserves. Powell’s statements affected sentiment in traditional markets; the S&P 500 fell 2 percent, while the dollar index rose 0.8 percent. Following Powell’s remarks, the yield on 10-year Treasury bonds rose 14 basis points.
Dragosch noted that the risk-off atmosphere will continue for some time and added:
“The macroeconomic picture suggests that the Fed is continuing to tighten its grip as financial conditions continue to tighten following three consecutive rate cuts since September.”
Dragosch was one of the few experts who predicted a major BTC price rally in July, when Bitcoin dropped to $50,000 before surpassing the $100,000 level.