Bitcoin after Donald Trump’s re-election as US President $95,971.3experienced an unprecedented rise in history. Last week, the Bitcoin price approached all-time highs, reaching $110,000. However, prices have entered a period of fluctuation again, with a 12% decline in recent days. Experts think that this decline indicates that the market is in a temporary stagnation phase.
Fed’s Interest Policies and Crypto Market
The US Federal Reserve’s (Fed) cautious stance on interest rate cuts and Chairman Jerome Powell’s negative comments on Bitcoin caused fluctuations in the markets. Powell stated that Bitcoin reserves could promote economic instability. These statements caused Bitcoin to retreat from its record level. This volatility observed in crypto markets was a development that investors watched carefully.
While the uncertainty of the Fed’s interest rate cut decisions created distrust in the markets, long-term investors preferred to take profits during this period. The fluctuations encountered increased the pressure on price movements.
ETFs and the Bitcoin Investment Wave
Spot Bitcoin ETFs in the US have seen net outflows of $948.9 million in the last two days following a prolonged period of calm. Despite this, ETFs continue to hold 1,139 million BTC, which is 5,425% of the total Bitcoin supply. Analysts state that this outflow is due to long-term investors creating provisions in the market by liquidating their portfolios. BlackRock’s iShares Bitcoin Trust fund is the largest Spot Bitcoin ETF in the market with 553,464 BTC, which is 2,636% of the total supply.
Experts emphasize that the declines do not mean that Bitcoin is weakening. According to Swissblock analysts, these movements point to the market’s recovery potential. Continued profit taking supports belief in Bitcoin’s long-term resilience. The market may find a new direction within the framework of the Fed’s future interest rate decisions and economic policies.
Investor behavior and economic developments in the Bitcoin market play an important role in determining future strategies. Therefore, it is seen as a critical necessity for market participants to act consciously.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
