The cryptocurrency market is experiencing a significant downturn, reversing the brief rally observed last week. Bitcoin (BTC) has retracted to the $112,000 price level, reflecting broader market volatility. According to data from CoinMarketCap, Bitcoin’s value has decreased by 0.15% in the last 24 hours and 3% over the past week.
However, despite this recent correction, BTC’s longer-term performance remains positive. It has registered a 0.1% gain in the 14-day charts, a 1.7% increase over the previous month, and a substantial 76.8% rise since September 2024. This market behavior underscores a period of consolidation following significant gains, with investors closely monitoring key support levels.
Why Is The Crypto Market Falling?
Bitcoin (BTC) has faced a downturn despite an interest rate cut earlier this month. The Federal Reserve reduced rates by 25 basis points, sparking a short-lived market rally before this week’s correction. In a speech yesterday, Federal Reserve Chair Jerome Powell noted that a weak labor market is taking precedence over concerns about persistent inflation, leading the Fed to lower interest rates.
Powell added, “Inflation risks in the short term are leaning higher, while employment risks are leaning lower—a difficult situation. With risks on both sides, there’s no path without peril.”
CoinGlass data indicates significant market pressure, with $284.36 million in crypto liquidations recorded over the past 24 hours. A sustained liquidation trend could exacerbate Bitcoin’s (BTC) current downward trajectory.
BTC currently demonstrates a support level at $111,500, potentially leading to price consolidation around prevailing levels. However, a breach of the $110,000 threshold would expose BTC to substantial downside risk, with a potential decline towards the $100,000 mark.
Bitcoin (BTC) could be headed for a rebound in the coming weeks. The CME FedWatch tool indicates a 91.9% likelihood of an interest rate cut in October. Such a move often sparks a broader market rally, which could potentially propel Bitcoin (BTC) to a new all-time high.
Also Read: Avalanche (AVAX) Surges 14% Despite Market Crash—What’s Behind the Rally?
Disclaimer
The information in this article should not be considered financial advice, and the OvenAdd platform is intended only to provide educational and general information. Please conduct your own research and consult a financial advisor before making any investment choices.
