-AD-
-AD-
HomeNewsCrypto in Crisis? Bitcoin Ignores Fed Cuts, Hits Startling Low!

Crypto in Crisis? Bitcoin Ignores Fed Cuts, Hits Startling Low!

- Advertisement -
  • Bitcoin’s price remains low despite Fed’s dovish stance; no rate change influences BTC.
  • Bitcoin drops to $63,400, marking its lowest level since July 19 amid market uncertainty.

Despite the Federal Reserve’s dovish stance, Bitcoin’s price failed to rally, tapping a two-week low as market liquidity remained a primary concern for traders.

The recent Federal Open Market Committee (FOMC) meeting concluded with the decision to maintain interest rates, with Fed Chair Jerome Powell suggesting a potential rate cut in September dependent on favorable inflation data.

“The second-quarter’s inflation readings have added to our confidence, and more good data would further strengthen that confidence. We will continue to make our decisions meeting by meeting.”

Bitcoin, typically sensitive to Fed’s monetary policies, displayed unusual indifference following the meeting. The price of Bitcoin fell to $63,400, its lowest point since July 19, reflecting a persistent weakness despite the crypto market’s anticipation of a rate cut. 

Source: Tradingview

This disconnect highlights the current complexities in cryptocurrency market, where even a dovish Fed does not necessarily translate to bullish crypto movements.

Source: CME Group

Crypto analysts on X expressed skepticism about the immediate future of Bitcoin prices.

One trader suggested that Bitcoin might drop further, estimating potential lows between $61,000 and $59,000, depending on market confidence levels.

Source: CoinGlass

This cautious outlook underlines the ongoing uncertainty and speculative nature prevalent in the crypto trading community.

In contrast, equities responded positively to the Fed’s announcements, underscoring a divergence in how traditional and digital asset markets react to economic signals.

Source: CrypNuevo/X

This separation suggests that factors specific to the cryptocurrency market—such as liquidity concerns and regulatory developments—might be exerting a stronger influence on crypto prices than broad economic policies.

Moreover, the broader crypto market remains tense, with traders closely monitoring daily outflows from newly launched US spot Ether ETFs and potential sell pressures from ongoing financial events like the Mt. Gox repayments and US government actions.

“The establishment of a U.S. or sovereign ‘put’ on BTC prices may have significant implications, potentially making accumulation on dips a strategic investment approach.”

The complex interplay of these factors continues to shape market sentiment, keeping traders on edge.

The possibility of a U.S. government-supported price floor for Bitcoin may redefine investment strategies, potentially encouraging buying during price dips as a strategic move.

Disclaimer: ETHNews does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. ETHNews is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: info@ethnews.com Phone: +49 160 92211628
RELATED ARTICLES

LATEST ARTICLES