The U.S. Federal Reserve (Fed) will announce its latest interest rate decision and updated economic forecast summary this week. As investors wait for these important information, the cryptocurrency market started this week under pressure, with Bitcoin falling back to around $58,500. It gave up almost all of its gains over the weekend.
According to CoinGecko market data, Bitcoin fell nearly 3% today (16th), changing hands at $58,447 at the time of writing; the top 10 cryptocurrencies fell across the board, with Ethereum falling the most, falling 5.6% to $2,280 in the past 24 hours.
According to data from Coinglass, the cryptocurrency derivatives market suffered approximately $163 million in liquidations in the past 24 hours, of which approximately $144 million came from long positions.
In addition to the extent of interest rate cuts, the market is also paying attention to these 2 things
The U.S. Fed's interest rate decision will be released at 2 a.m. Taiwan time on Thursday. Although a rate cut is almost a foregone conclusion, this will be the first time the U.S. Fed has lowered interest rates in more than four years. In an environment of loose monetary policy, risks such as cryptocurrency and stocks Assets are expected to benefit, but due to mixed economic data, the market expects a 50% chance of a 1-digit rate cut and a 50% chance of a 2-digit rate cut.
Therefore, the "dot plot" released by the Fed after the interest rate meeting, which is the estimate of the interest rate path, and the "post-meeting statement" by Fed Chairman Jerome Powell will also be important keys to changes in the global market.
Sean McNulty, director of trading at liquidity provider Arbelos Markets, noted:
The rate cut itself is not as important as the signal released at the press conference. If journalists deliver clearly dovish comments, we expect Bitcoin to start an uptrend.
Trump suffered another assassination attempt, and Bitcoin did not rise this time
The outlook for monetary policy has become the dominant factor influencing Bitcoin’s short-term moves, overshadowing, at least for now, the twists and turns of the U.S. presidential campaign. Early this morning, Republican presidential candidate Donald Trump encountered another assassination attempt while playing golf in Florida. Gunshots were heard at the scene. Fortunately, Trump was not injured.
In the fierce competition with his Democratic rival, Vice President Kamala Harris, Trump actively embraced the cryptocurrency industry, vowing to become a "president who supports Bitcoin" and promising to "never allow the U.S. government to sell its holdings" "Bitcoin", trying to win over the votes of the currency circle.
After Trump was assassinated for the first time in July this year, the image of Trump with blood on his face and shouting "Fight" with his arms raised strengthened his "tough guy" image. At that time, the market speculated that his chances of winning the November presidential election had increased. The increase once pushed Bitcoin to soar strongly.
〈The gains over the weekend were almost wiped out! Bitcoin "feels weak" and falls to US$58,500, the market focuses on the Fed's interest rate cuts> This article was first published on "Blocker".
