Ramazan Eles 
Bitcoin price fell sharply in anticipation of the Fed’s interest rate decision and Powell’s statements. The cryptocurrency fell from $60,000 to $56,000 levels in the morning hours.
So, why is Bitcoin falling?
Key Reasons Behind the Decline:
Fed Interest Rate Decision and Powell’s Statements: Markets are jittery about Powell’s possible statements following the decision to be announced today.
Decreasing ETF Investments: Bitcoin ETFs, in particular, have all closed in the red every day for the past week. There has been a net investment outflow of over $500 million from ETFs in a few days.
Macroeconomic Concerns: There is a concern among investors that the Fed will keep interest rates high for a longer period, which could hurt interest-rate sensitive assets like cryptocurrencies, emerging market stocks and bonds, and even commodities.
Analyst Views:
Fineqia research analyst Matteo Greco: “The recent downward trend can be attributed to increased profit-taking by investors who entered the market during the 2022 and 2023 crises, as well as ETF investors who witnessed significant price increases in their shares after entering the market in the early weeks of 2024.”
Reuters: “The Fed is not expected to make any changes to interest rates, but there is a growing belief among investors that the central bank may not cut rates at all this year, which could hurt interest-rate sensitive assets like cryptocurrencies, emerging market stocks and bonds, and even commodities.”
Bitcoin’s Future:
Bitcoin’s future will depend on the Fed’s interest rate decision and Powell’s statements. Investors are curious to see what kind of signal Powell will give about cryptocurrencies.
The Fed’s interest rate decision will be announced this evening at 9:00 PM. Powell’s press conference will be held at 9:30 PM.
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