$BTC

Bitcoin's price has recently declined, influenced by several key factors:

Anticipation of Federal Reserve's Interest Rate Decision

Investors are closely watching the Federal Reserve's upcoming interest rate decision, expected to result in a 25 basis point cut. Such monetary policy changes can significantly impact risk assets like cryptocurrencies, leading to increased market volatility.

Cascading Derivatives Liquidations

The market has experienced cascading derivatives liquidations, where the unwinding of leveraged positions accelerates price declines. This phenomenon contributes to heightened volatility and can exacerbate downward price movements.

Technical Indicators Signaling Weakness

Technical analysis suggests a weakening in Bitcoin's upward momentum. A bearish divergence between rising prices and a declining relative strength index (RSI) often precedes price corrections, indicating potential for further declines.

These factors collectively contribute to the recent downturn in Bitcoin's price.