Cryptocurrency The last trading day of the week is bad for investors and Bitcoin $55,763.36 The price dropped to $53,632. The sales were extremely fast and were frustrating for investors. We saw losses exceeding 4 percent in altcoins. Different analysts shared their assessments of the current situation. So what are the market expectations?
Cryptocurrencies Are Falling
Following the decline in US stock markets, cryptocurrencies also turned downward. Intel, Amazon The losses experienced by giants such as shook the US stock markets. Fed rate cuts While the stock market sees a peak and prices it as it approaches, crypto shows a negative correlation in the rise and follows stocks in the fall. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
The Kobeissi Letter wrote the following in its latest assessment of the market impact of Fed policy:
“According to Kalshi, forecast markets are pricing in a 23% chance of a 50bp rate cut this month. That’s a 13 percentage point drop since this morning’s employment figures. As we’ve been saying for weeks, both a 50bp rate cut and an emergency rate cut are NOT necessary.
Labor market “As the economy cracks, the Fed needs to avoid moving too quickly again. The Fed has a bumpy road ahead. Inflation remains around 3%, but the labor market is now cracking. That means the Fed must choose between allowing the labor market to weaken further or risking inflation rising again. Steady rate cuts of 25 basis points are the best option under current economic conditions.”
This means the Fed will lower interest rates and employment data is weakening, but Why are cryptocurrencies falling? It seems like a sufficient explanation for those who say, “I’m not going to say that.” Moreover, the initial period of Fed rate cuts has caused similar declines in the past, as we have mentioned many times in the past.
Analysts Comments on Bitcoin
Benjamin Cowen is a popular name and in his latest assessment, September BTC drew attention to the return for . These figures were something that analysts constantly emphasized, especially after mid-August. In September Bitcoin (BTC) falls and it was said not to have high expectations. And that’s what happened. So far, the return for September is -8.16% and it’s been worse in the last 5 years. For example, there was a loss of nearly 15% in 2019.
Cowen wrote on top of this:
“If BTC closes the month at this price, it will be a pretty typical September.”
The analyst nicknamed Roman also shared the chart below in his latest market assessment and wrote:
“And now BTC and cryptocurrencies are falling as a result of the volatility experienced by SPX and DXY.
“There are many other external factors that can affect price action and this is one of them. This is a big reason why I am not long on Bitcoin while it is stalling at macro support.”
In summary, although it is holding above $50,000 for now, it is not impossible for the BTC price to fall below $50,000.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
