The Cryptocurrency market is facing a significant crash after a short rally last week. Bitcoin (BTC) has dropped further to $ 111,500 price level. According to Cooiestecko data, Bitcoin (BTC) has dropped 0.7% over the past 24 hours4.5% in the past week and 1.7% compared to the previous month. Despite the steep correction, BTC has increased by 0.1% in the 14-day diagrams and 76.8% since September 2024.
Why does the crypto market fall?
Bitcoin’s (BTC) decline comes despite an interest rate cut earlier this month. The Federal Reserve lowered interest rates by 25 points, which led to a short market rally, before this week’s correction. The Federal Reserve Chairman Jerome Powell gave a speech yesterday, stating that weakness in the labor market is considering concern about a stubborn inflation. The development got the Fed to lower interest rates.
The uncertain road may have led to a dip in the investor’s feeling. Bitcoin (BTC) and the larger crypto market may have undergone the Fed’s somewhat restrictive attitude.
Will Bitcoin fall below $ 100,000?
According to Coinglass -data, the crypto market of $ 292.30 million in liquidations over the past 24 hours. If the liquidations continue, Bitcoin (BTC) can continue its downward track.
Bitcoin (BTC) has some support at the price level of $ 112,000. BTC’s price can be consolidated around current levels at the moment. If BTC drops below $ 110,000, it would face significant risks of falling to $ 100,000.
There is a chance that Bitcoin (BTC) will recover in the coming weeks. The CME FEDWATCH tool Tips on a 91/9% chance of an interest rate cut in October. Another interest rate reduction can trigger a market -wide rally. Such a development can push Bitcoins (BTC) price to a new highest time.
