Bitcoin Price Experiences Significant Drop Before Federal Reserve Chair’s Speech

Cryptonews Nia Simpson September 30, 2024

Bitcoin Price Experiences Significant Drop Before Federal Reserve Chair’s Speech

Bitcoin’s price has dropped by $3,000 within hours, falling to over $63,000 amid a broader market correction. This decline occurred just before Jerome Powell’s scheduled speech on monetary policy. Altcoins also suffered losses, and liquidations on over-leveraged positions rose to $190 million. Investors await Powell’s insights on potential further interest rate cuts, which could impact market conditions.

The cryptocurrency market is experiencing a significant downturn on this Monday, with Bitcoin witnessing a steep decline of approximately $3,000 in just a few hours, settling above $63,000. This slump occurred shortly before a scheduled address by Jerome Powell, the Chair of the United States Federal Reserve, in Nashville, Tennessee, where stakeholders are anticipating crucial insights regarding the Fed’s monetary policy adjustments. Earlier today, CryptoPotato reported on an initial drop in Bitcoin’s value from over $66,000 to about $64,200. Following this, the cryptocurrency continued its downtrend, reaching a low of $63,250 before making a minor recovery to $63,500. The adverse market conditions have affected altcoins as well, with notable declines including Shiba Inu dropping by 6.3% and Dogecoin falling by 5%. This market volatility has led to an increase in liquidated positions, with recent data from CoinGlass indicating that approximately $190 million worth of leveraged positions were liquidated within the last day, affecting around 70,000 over-leveraged traders. Analysts believe that the uncertainty surrounding Jerome Powell’s upcoming speech is contributing to this volatility. Reports from Reuters suggest that he is expected to clarify the recent changes in the Fed’s monetary policy, particularly the unprecedented 0.5% interest rate cut implemented for the first time in over four years. Economists predict that Powell may signal further rate reductions anticipated during the FOMC meeting in 2024 and possibly in 2025, with an additional rate cut expected on November 6-7, ranging from 0.25% to 0.5%.

Bitcoin, the leading cryptocurrency, often reacts to global economic signals and monetary policy announcements, particularly those from the US Federal Reserve. Jerome Powell’s speeches are closely monitored by investors due to their potential to influence financial markets, including cryptocurrencies. The recent decline in Bitcoin’s value is compounded by a broader trend affecting altcoins, reflecting investor sentiment amidst changing monetary policies. Rate cuts from the Federal Reserve typically create an environment that can either bolster or undermine asset prices, depending on economic conditions and investor perceptions. It is essential for market participants to pay attention to these developments as they may signal further fluctuations in the cryptocurrency market.

In summary, Bitcoin’s price experienced a notable decrease, shedding $3,000 in a matter of hours leading up to Jerome Powell’s anticipated speech regarding US monetary policy. The resultant market dynamics affected not only Bitcoin but also altcoins, contributing to a significant increase in liquidations among over-leveraged traders. As the market awaits further guidance from the Federal Reserve, the potential for additional interest rate cuts could further shape the landscape for cryptocurrency valuations in the upcoming months.

Original Source: cryptopotato.com