While macroeconomic factors and Fed decisions influence prices, some analysts see the decline as an attractive window to take advantage of in the long term.
Altcoins are also experiencing mixed fluctuations.
Reuters
Cryptocurrenciesshow a mixed performance this Thursday, with moderate increases in some assets. Bitcoin (BTC), after recovering in the American and Asian session, surpassed the US$58,500although it is now trading slightly above US$57,000. Ethereum (ETH), for its part, is trying to consolidate around $2,400, after having touched $2,300 in previous days.
Altcoins are also experiencing mixed results. Solana (SOL) and dogecoin (DOGE) are up more than 2%, while cardano (ADA) is up more moderately. In contrast, other cryptocurrencies such as Binance coin (BNB) and tron (TRX) are down slightly, and toncoin (TON) is down more sharply, falling more than 3%. In recent days, TON has lost 9% of its value and is now down 45% annually, hit by the arrest of Pavel Durov, founder of Telegram.
These moves coincide with a pullback in the Crypto Fear and Greed Index, which has returned to a “fear” status in the market. This index, which measures sentiment towards bitcoin and other cryptocurrencies, ranges from 0 (extreme fear) to 100 (extreme greed). However, experts note that a “fear” reading can be seen as a buying opportunity, while “greed” could suggest overbought, opening the door to corrections.
Bitcoin: What the data says
In the past, sharp declines in this indicator have preceded major market rallies. For example, in July, Bitcoin fell to $53,000, but by the end of the month it had nearly reached $70,000. A similar pattern was seen in August, when the cryptocurrency fell to $49,000 before rebounding to $65,000.
Despite these fluctuations, many investors remain optimistic about the future of Bitcoin and cryptocurrencies in general. They anticipate that a possible interest rate cut by the Federal Reserve (Fed) will boost the prices of risky assets. According to CME’s FedWatch tool, there is a divided consensus: 57% believe the Fed will reduce rates by 25 basis points, while 43% are betting on a 50 basis point cut.
However, not everyone shares this positive outlook. Bitfinex strategists warn that if the Fed opts for a 50 basis point cut, bitcoin could fall by as much as 20% to $40,000. However, they note that this prediction could change if macroeconomic conditions evolve favorably. “Bitcoin’s growing correlation with traditional assets such as the S&P 500 indicates that its price will continue to be dependent on global economic factors,” they say.
bitcoin cryptocurrencies
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On the other hand, the analysis firm K33 Research believes that this is a good time to buy bitcoin. According to Vetle Lunde, an analyst at K33, buying in September, during major declines, has proven to be a profitable strategy for long-term investors. In fact, those who bought in early October and sold in April would have earned a return of 1,449% since 2019, while the opposite strategy would have generated losses.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
