đ Market Musing: Why is Bitcoin Falling? Analysts Weigh In
đ Geopolitical Shock
The crypto market experienced a sharp decline recently, with Bitcoin taking a notable hit. This downturn was sparked by geopolitical events, including a reported second assassination attempt on former US President Donald Trump. This news rattled financial markets globally, acting as a catalyst for the sudden drop in crypto prices.
đ„ Market Liquidations
In addition to the geopolitical shock, about $70 million in long positions were liquidated during low-liquidity trading hours, particularly before the Asian markets opened. These liquidations deepened the losses, sending Bitcoin into a tailspin.
đ Potential for Rebound?
Despite the bearish sentiment, history offers a glimmer of hope. After a similar event involving Trump in July, Bitcoin surged 13.8% in a week. Could we see a repeat of this recovery pattern in the coming days? Speculation is mounting among analysts.
đŁ FOMC Meeting on the Horizon
Adding to the marketâs uncertainty, the FOMC meeting scheduled for September 18 is looming. This meeting is critical as it could mark the first Fed rate cut of this cycle. Analysts are divided on whether the cut will be 25 or 50 basis points, with the latter becoming increasingly likely, pushing market volatility higher.
đ€ Token2049 Conference
The ongoing Token2049 conference, a major event bringing together key players in the crypto industry, is also in focus. Alongside the FOMC decision, this conference adds to the marketâs potential volatility this week.
đ Rising Volatility
QCP Capital reports a sharp increase in implied volatility across major cryptocurrencies. Bitcoinâs volatility rose by 8 points, and Ethereumâs by 20 points, signaling heightened market anxiety. Any unexpected macroeconomic data could exacerbate these trends, making the market more susceptible to wild swings.
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