Why is Bitcoin down today?
Bitcoin price today dropped sharply mainly due to the market's reaction to the US Federal Reserve's (Fed) decision to cut interest rates. Recently, the Fed reduced interest rates by another 0.25% and forecast that there would be only two cuts in 2025, instead of four as previously expected. This has made investors feel concerned about future growth prospects, leading them to quickly sell risky assets, including Bitcoin.
Before the drop, Bitcoin reached a record high of nearly $108,268. However, after the announcement from the Fed, the price of this currency fell below 100,000 USD and recorded a decrease of about 6.63% compared to its peak. The situation takes place in the context that many investors are taking profits after previous strong price increases. The inability to stay above the $100,000 mark stimulated a strong wave of selling, causing panic in the cryptocurrency market.
