Andrew Kang, a fund manager, said something bad about Bitcoin’s price a while back. He said there might be another crash like the one in May 2021. Kang said the market is weak because trade ranges are long and there is a lot of crypto debt. He found that Bitcoin prices could drop as low as $40,000 if they stay below this level for four months. Things are likely to go a lot like in May 2021, when Bitcoin and other cryptocurrencies dropped sharply after going up quickly.
Bitcoin’s value dropped below $54,000 when Mt. Gox moved $2.7 billion worth of Bitcoin to a new address. These steps are being taken to prepare before the $9 billion bills are due in July. The market is scared. It has lost almost 12% of its value in the last week. It has gone down 7.5% in the past 24 hours. It’s also bad for all coins and bills. Ethereum’s price has dropped below $3,000 in this case. Right now, a BNB Coin is worth $470.
Many people are scared about Mt. move and future payments. This proves that the market is still very delicate and open to changes.
Bitcoin Benefits From Federal Reserve’s Interest Rate Cuts
The Federal Reserve will lower interest rates in September and maybe again in December. Because of this, the US dollar has been going down for four days in a row. It hit its lowest point in over three weeks. This is because the US economy has been getting worse lately. The falling dollar value is good for the Bitcoin market because it makes investments like Bitcoin more appealing.
The Federal Reserve will change interest rates based on the US Non-Farm Payrolls (NFP) report, so buyers need to know about it. The report will show that the US economy added 190,000 jobs in June, less than 272,000 in May. The job market is safe because only 4% of people are unemployed. The rise in hourly pay may slow down. It could drop from 4.1% in May to 3.9% a year.
First, the value of USD decreased, which is good for the Bitcoin market.
The NFP report will greatly impact how the Fed sets rates in the future. Bitcoin will be a better way to save money when the Federal Reserve lowers interest rates.
Many people will be interested in these numbers because they tell us more about the US economy and what they might mean for FOMC policy. Since the economy isn’t clear, people may look for other choices. People who want the US dollar to fall and think Fed rates will go down could help the price of Bitcoin (BTC).
It lost $53,980 today, or 4.62% of its value. The number in the middle of the 4-hour chart is $55,180. Spending more than $57,090, $58,510, and $60,220 will be hard. Help is available for $53,140, $51,720, and $49,910. The market has little strength right now, as shown by the RSI reading 17.
For the past 50 days, the Exponential Moving Average (EMA) has been $60,510. As long as prices stay below the middle point, they’ll drop. If they break above $55,180, prices could go up. If prices stay below this level, the direction will still be down.
