tl;dr
Bitcoin's price has dropped 4% to $64,696 ahead of the Federal Reserve's meeting, where interest rates are expected to remain unchanged. Factors such as inflation and market instability, along with outflows from Grayscale's crypto fund, are contributing to the decline. Additionally, Bitcoin's rapid ...
Bitcoin's price has dropped 4% to $64,696 ahead of the Federal Reserve's meeting, where interest rates are expected to remain unchanged. Factors such as inflation and market instability, along with outflows from Grayscale's crypto fund, are contributing to the decline. Additionally, Bitcoin's rapid surge has led to concerns that the asset is "technically overbought," indicating a correction may be imminent.
The price of Bitcoin is now trading for $64,696, according to CoinGecko—a 4% 24-hour drop. Just five days ago, the biggest coin had hit a new all-time high of $73,737. It even flipped silver’s market cap. Tomorrow, the Federal Reserve will reveal whether it will be cutting interest rates, which have been at a 23-year high for some time. It is expected that the central bank will keep them where they are. The Fed started raising rates in 2022 in a bid to mitigate 40-year high inflation rates. But this isn’t the only reason. The recent decline in prices can be attributed to a combination of factors, including the sudden drop on Tuesday on exchange BitMEX’s Bitcoin prices "likely contributed to the market’s instability." Flows into newly approved exchange-traded funds (ETFs) have also been negative overall as clients of one of the biggest crypto funds—Grayscale—cash out. Yesterday, the fund experienced its biggest single-day outflows. Butterfill also added that Bitcoin’s rapid surge meant that the asset was “technically overbought.” An “overbought” asset refers to when its price is higher than it’s actually worth—and means a correction is due. Between inflation and the upcoming halving, the road looks rocky for the near future.
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