Bitcoin has sharply declined to a two-week low of under $62,000, following a brief recovery. This drop coincides with significant liquidations in the crypto market, totaling approximately $350 million, impacting nearly 120,000 over-leveraged traders. Despite expectations of forthcoming interest rate cuts from the Federal Reserve, the market remains volatile, with many altcoins also experiencing declines.

In the past hour, Bitcoin’s price has experienced a significant decline, falling to a two-week low of just under $62,000. This recent downturn marks the lowest valuation for Bitcoin since the US Federal Reserve announced interest rate cuts in mid-September. Earlier in the day, Bitcoin had briefly recovered from a previous dip below $63,000, approaching $64,000. However, it faced strong resistance and subsequently plummeted to $61,800 on Bitstamp before showing signs of recovery, gaining approximately $1,000.

This price decline in Bitcoin occurs despite optimism surrounding plans for upcoming interest rate cuts from the Federal Reserve, as articulated by Jerome Powell. His statements about potential future rate reductions were expected to bolster Bitcoin’s market performance, following its previous surge after the last rate cut when it rose from $59,000 to over $66,000 in a matter of ten days. Notably, the volatility within the cryptocurrency market has led to substantial liquidations, impacting nearly 120,000 over-leveraged traders and resulting in approximately $350 million in liquidated positions, primarily attributed to long positions.

In summary, the recent decline of Bitcoin to a two-week low raises concerns about the future trajectory of the cryptocurrency market, particularly in light of impending interest rate cuts. Despite the Federal Reserve’s potential measures to stimulate the economy, the volatility has heavily impacted leveraged traders, emphasizing the risks associated with trading in this dynamic market.

Original Source: cryptopotato.com

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