According to some experts, Bitcoin’s price could drop below $54,000, which would be a significant shift for the cryptocurrency market. This happens after the global crypto market value dropped sharply and now stands below the important $2 trillion mark.
Some experts say that Bitcoin’s price could fall below $54,000. If that happens, it would be a significant shift for the bitcoin market. This is happening because the value of the crypto market dropped sharply and is now less than the important $2 trillion mark.
Bitcoin’s Path Forward: Potential Correction Below $54,000 Amid Fed Rate Cut Expectations
Alex Kuptsikevich, a senior market expert at FxPro, said that Bitcoin would have to drop to around $54,000 before it could start to go up again. Based on Kuptsikevich’s analysis, Bitcoin could fall even further, below $50,000, if current trends continue.
The fact that people think the US Federal Reserve might lower interest rates makes things even more complicated. This long-awaited change could happen in September, which is usually seen as good for risky investments like Bitcoin. Analysts at Bitfinex have said that a drop in interest rates could theoretically help Bitcoin, but it could also lead to a significant drop in price if the economy as a whole doesn’t get better soon.
Different investors have different ideas about what will happen at the Federal Reserve’s meeting on September 18.
According to the CME FedWatch tool, there is a 59% chance of a 25 basis point rate cut and a 41% chance of a significantly greater 50 basis point cut. This uncertainty makes the future for Bitcoin’s price even more complicated.
A significant drop in money coming into US spot Bitcoin exchange-traded funds (ETFs) in September has made Bitcoin even more volatile. According to data from Farside Investors, US ETFs lost over $287 million in five days, showing that money was leaving the funds.
Historically, September has been a bearish month for Bitcoin, with average returns of -4.69%, according to CoinGglass data.
Even with these problems, there is still a chance that money will move into Bitcoin ETFs. By February 15, 2024, spot ETFs were responsible for about 75% of all new Bitcoin investments. They could be very important in driving Bitcoin prices to new highs if the current trend changes.
Investors and analysts will be keeping a close eye on Bitcoin’s movements and the effects of upcoming economic indicators as the market navigates these rough seas.
