The price of Bitcoin (BTC) fell 4.1% between September 15 and September 16 to $57,595. This decline comes after Bitcoin’s price rose from $57,890 to $60,580 on September 13. Analysts attribute Bitcoin’s recent gains to the weakening US dollar and gold reaching record highs. In addition, $263 million inflows into Bitcoin spot exchange-traded funds (ETFs) and MicroStrategy’s $1.11 billion purchase of BTC supported this rise.
However, Bitcoin has not closed above $62,000 in three weeks. Investors are cautious as the US Federal Reserve is expected to cut interest rates. A 0.50% rate cut at the Federal Open Market Committee (FOMC) meeting on September 18 could have a positive impact on risk markets, but a 0.25% cut could have a negative impact.
China’s slowdown in economic growth is also adding to uncertainty. Retail sales increased by 2.1% and industrial production by 4.5% in August. This poses a short-term risk to Bitcoin's price. However, it can also be argued that Bitcoin is a hedge against potential government intervention as an independent financial system.
Finally, a Bitcoin address that has been dormant for a long time moved 211.3 BTC to the Kraken exchange and the US Securities and Exchange Commission's (SEC) expansion of its lawsuit against Binance negatively affected investor sentiment.
How do you think Bitcoin's price will fare in the face of these uncertainties? We are waiting for your comments.