The cryptocurrency market has seen a recent crash, with Bitcoin experiencing a downward trend. Bitcoin’s price dropped over 4% to $66,475, continuing the decline from last Friday’s retreat from the $70,000 level. This decline may have been triggered by long liquidations in which traders were forced to sell their assets to cover debts. Data from CoinGlass shows $56 million worth of long Bitcoin liquidation on central exchanges in the last 24 hours.
Investors in both the stock market and cryptocurrency market are on edge as they await the Federal Reserve’s interest rate decision. The Fed’s two-day policy meeting is underway, with an announcement expected tomorrow. The Dow Jones Industrial Average lost 272 points, and the S&P 500 fell 0.3% amid concerns that the Fed may not lower interest rates this year. Bartosz Lipiński, CEO of Cube.Exchange, stated that the market seems to be losing confidence in a Fed interest rate cut, leading to fears about the long-term impact of higher rates. Lipiński noted that while option positions suggest a potential rally, volatility may persist until the Fed’s plans become clearer.
Lipiński pointed out that recent sell-offs indicate an ongoing market “malaise.” Despite the potential launch of spot ETH ETFs in the US and strong Bitcoin fundamentals, there has been no significant catalyst to drive prices higher. While supply is constrained by ETFs, sentiment has yet to catch up. Lipiński emphasized that current market conditions are not conducive to investment advice and that investors should be cautious.
The cryptocurrency market’s recent crash has been largely attributed to Bitcoin’s decline, as it fell over 4% to $66,475. This downward trend began last Friday when Bitcoin retreated from the $70,000 level. Long liquidations played a significant role in these losses, with $56 million worth of long Bitcoin liquidation on central exchanges in the past 24 hours, according to CoinGlass data. Investors are closely monitoring the Federal Reserve’s upcoming interest rate decision, with concerns that the central bank may not lower rates this year. Lipiński of Cube.Exchange noted that market confidence in a Fed interest rate cut is waning, leading to fears about the long-term implications of higher rates.
The stock market’s negative performance also added to investor anxiety, with the Dow Jones Industrial Average losing 272 points and the S&P 500 falling 0.3%. Lipiński highlighted the lack of a significant catalyst to drive prices higher, despite positive fundamentals for Bitcoin and potential developments such as the launch of spot ETH ETFs in the US. He cautioned investors against making decisions based on current market conditions, emphasizing the need for a clearer understanding of the Fed’s plans. Lipiński also mentioned that ongoing market volatility could persist until a more definitive market outlook emerges.
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