The main cause of this fall was the market’s reaction to the statements of the president of the United States Federal Reserve (Fed), Jerome Powell, who announced that he would maintain interest rates at their current level.
This week is turbulent for the cryptocurrency market, marked by a significant correction. This Friday the bitcoin experiences an abrupt drop of 3.6%, and is positioned below the US$65,000although it would seem like an achievement, since it was recovered from the US$60,000 from Wednesday.
The main cause of this fall was the market’s reaction to the statements of the president of the Federal Reserve of the United States (Fed), Jerome Powellwho announced that he would maintain the interest ratesis at its current level and planned three cuts during 2024despite reducing flexibility expectations for 2025 and 2026.
JP Morgan analysts warn that BTC could decline further, considering it is at “overbought territory“, even after the correction. Furthermore, they highlight that “as we get closer at the halvingprofit-taking is more likely to continue, especially in a positioning context that still appears overbought despite last week’s correction.”
Bitcoin: what’s happening with the price
Regulatory concerns have also influenced the market, with the elimination of the second cryptocurrency larger, Ethereum. This situation is reflected in the fall of Ethereum this Friday, reaching around US$3,434.
Despite these challenges, optimism persists in the markets. According to CoinGlass, the ratio of long to short positions in Ethereum-related derivatives remains at approximately 1.1, despite recent liquidations of long positions. Additionally, open interest in Ethereum futures remains near all-time highs, hovering around $12 billion.
As for other cryptocurrencies, Solana registers a drop of more than 7%, reaching $174, while XPR experiences a slight increase of 1%, standing at $0.623. On the other hand, Cardano suffers a loss of more than 2%, settling at $0.621.
Source: Ambito
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