The cryptocurrency market has taken a hit, with Bitcoin’s price plummeting to a multi-week low of $91,330 on Bitstamp. This significant drop follows a string of consecutive all-time highs, with the latest peak reaching just over $108,000 on December 17.
Market Volatility and MicroStrategy’s Acquisition Streak
The current market downturn can be attributed to the US Federal Reserve’s FOMC meeting, where hawkish comments from Chair Jerome Powell sparked a sharp decline in Bitcoin’s value. Despite a brief bounce, the asset has failed to regain momentum, with its price slumping to $92,000 just three days after the FOMC meeting.
Interestingly, MicroStrategy’s consecutive Bitcoin purchases every Monday have been followed by immediate corrections, with the asset’s price dropping by over $5,000 on each occasion. This trend has raised concerns among analysts, who warn that if Bitcoin loses the $90,000 support level, it could slump to and below $80,000.
Altcoins and Market Sentiment
The negative trend has spread to the altcoin market, with XRP and ADA experiencing significant drops of over 6%. Meme coins have also been hit hard, with many investors taking a cautious approach to the market.
Key Takeaways
* Bitcoin’s price has slumped to a multi-week low of $91,330 on Bitstamp. * The current market downturn can be attributed to the US Federal Reserve’s FOMC meeting and MicroStrategy’s consecutive Bitcoin purchases. * Analysts warn that if Bitcoin loses the $90,000 support level, it could slump to and below $80,000. * The altcoin market has also been affected, with XRP and ADA experiencing significant drops.
Source: Cryptopotato.com
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