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Why is crypto down today? Looking at Bitcoin, FED, and past week’s sell-off effects!
The cryptocurrency market has taken a drastic turn in the last 24 hours, with significant losses reported across various assets. In this article, we’ll examine the recent price action of Bitcoin (BTC) and the Federal Reserve’s (FED) impact on the current bearish trend.
To start, it is essential to acknowledge that the two-day U.S. Federal Reserve meeting, which concluded on 17 December, had a significant influence on the market. The FED’s policy statement forecasted only two interest rate cuts in 2025, contrary to previous projections of four. This led to an approximately 2.5% drop in the Dow Jones index, resulting in losses for various risk-on assets.
As Bitcoin [BTC] fell by a whopping 2.75% over the past day, we see that it’s been experiencing a bearish trend since December 19th when its market structure turned bearish. It’s essential to remember that this information is based on historical data and doesn’t guarantee future performance.
From an analytical perspective, looking at the chart of Bitcoin [BTC] reveals a bearish crossover by the moving average and a significant reduction in buying pressure as seen by the A/D indicator. In addition to these factors, I observed that the short-term sentiment had turned bearish following the recent events surrounding the FED’s decision.
Further analysis reveals that the crypto market is down today due to previous losses from last week’s sell-off effects. The data we analyzed highlights a potential price move that might be checked at $97.6k and rebuffed by sellers before further volatility takes over as 2024 nears its end.
To put it simply, the recent actions of the Federal Reserve and last week’s market trends have had an unfavorable impact on Bitcoin [BTC] and other cryptocurrencies.
Source: ambcrypto.com
