BitcoinLong
Correction is over
Updated
The cryptocurrency market has once again showcased its volatility, with Bitcoin (BTC) experiencing a dramatic shift in price. After soaring to a record-breaking $108,000 earlier this week, its value has since dropped to $94,500, prompting widespread discussion within the crypto community about the sustainability of its current bull run.
Federal Reserve Impact
This price decline was fueled by recent comments from Federal Reserve Chair Jerome Powell, who emphasized that the central bank has no plans to purchase BTC, despite promises from former President Trump. Powell also hinted that further interest rate cuts in 2025 may not materialize. These statements caused a notable shift in market sentiment, with Bitcoin responding swiftly to the uncertainty.
End of the Bull Market?
Bitcoin’s price had already been on an upward trajectory before Trump’s election victory, spurred by the Federal Reserve's shift to a more accommodative monetary policy. The initial 50-basis-point rate cut ignited strong momentum in riskier assets like Bitcoin. However, the Fed's recent indications of a potential reversal in policy have dampened enthusiasm, leading to BTC's sharp decline.
The market reaction to Powell’s warnings has given credence to concerns that the bull market may be losing steam. If the Federal Reserve halts interest rate reductions, it could mark the end of Bitcoin’s post-election rally. Investor sentiment has already shifted, as evidenced by spot Bitcoin ETFs suffering their worst day of net outflows since launching almost a year ago.
A Healthy Correction?
Despite these concerns, some analysts argue this drop is merely a "healthy correction" in a longer bull market cycle. Captain Faibrik, a prominent figure in the crypto space, pointed to the $94,000 support level as a key marker. In their view, a test of this level could reset the market and provide the foundation for Bitcoin to resume its months-long rally.
Whether Bitcoin's current pullback signals the start of a bear market or just a temporary reset, one thing remains clear: the cryptocurrency market is as unpredictable as ever.
Federal Reserve Impact
This price decline was fueled by recent comments from Federal Reserve Chair Jerome Powell, who emphasized that the central bank has no plans to purchase BTC, despite promises from former President Trump. Powell also hinted that further interest rate cuts in 2025 may not materialize. These statements caused a notable shift in market sentiment, with Bitcoin responding swiftly to the uncertainty.
End of the Bull Market?
Bitcoin’s price had already been on an upward trajectory before Trump’s election victory, spurred by the Federal Reserve's shift to a more accommodative monetary policy. The initial 50-basis-point rate cut ignited strong momentum in riskier assets like Bitcoin. However, the Fed's recent indications of a potential reversal in policy have dampened enthusiasm, leading to BTC's sharp decline.
The market reaction to Powell’s warnings has given credence to concerns that the bull market may be losing steam. If the Federal Reserve halts interest rate reductions, it could mark the end of Bitcoin’s post-election rally. Investor sentiment has already shifted, as evidenced by spot Bitcoin ETFs suffering their worst day of net outflows since launching almost a year ago.
A Healthy Correction?
Despite these concerns, some analysts argue this drop is merely a "healthy correction" in a longer bull market cycle. Captain Faibrik, a prominent figure in the crypto space, pointed to the $94,000 support level as a key marker. In their view, a test of this level could reset the market and provide the foundation for Bitcoin to resume its months-long rally.
Whether Bitcoin's current pullback signals the start of a bear market or just a temporary reset, one thing remains clear: the cryptocurrency market is as unpredictable as ever.
Trade closed: target reached
1st target reached at 98K.
Note
Close trade here and wait till this break 99.7K to longNote
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