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The crypto sphere is currently experiencing a major turbulence, marked by a black day for the market. Bitcoin, once booming, is undergoing a significant drop, dangerously approaching 60,000 dollars. Meanwhile, altcoins are not left behind, recording marked declines. As the crypto universe struggles with this new reality, some signals of optimism still persist. Let’s explore the causes, impacts, and prospects of this unexpected downfall.
Bitcoin at a Crossroads
The price of Bitcoin has dropped towards 60,000 dollars, ending a series of positive performances. At the time of writing, the flagship crypto is trading at 60,700 dollars, down 3% on the day and 1.4% on the week. The bears have taken control, pushing Bitcoin towards this pivotal level.
The chart shows a sharp drop followed by precarious stabilization. The crucial question remains: will this support hold, or will the bears continue their assault to push Bitcoin below this critical psychological threshold? The next hours and days will be determining for the immediate future of Bitcoin.
Meanwhile, the market closely monitors any announcement that could influence the price of the flagship crypto. Investor sentiment oscillates between fear and hope, creating a palpable atmosphere of tension.
The majority of large-cap altcoins are also feeling the effects of this black day. Ethereum, for example, records a drop of nearly 3%, while BNB loses 2.2%, SOL drops by 1%, and DOGE falls by 1.4%. Even PEPE does not escape this trend, falling by 5.6%.
However, not everything is bleak in the altcoin kingdom. XRP, for example, manages to stay in the green. This resilience is explained by a positive update regarding the legal case between Ripple and the SEC. The recent decision by Judge Amy Jackson, dismissing the regulator’s allegations against Binance, has breathed a wind of optimism into the price of XRP.
Despite the prevailing gloom, these exceptions show that specific factors can still positively influence certain altcoins, even in a generally declining market.
Economic and Political Factors
The recent plunge of Bitcoin also finds explanations in the speeches and decisions of economic authorities.
Jerome Powell, chairman of the U.S. Federal Reserve, recently expressed reservations about a forthcoming interest rate cut.
At an event in Portugal, he emphasized the need for more convincing evidence on inflation before proceeding with monetary adjustments.
This caution from the Fed has cooled market enthusiasm, contributing to the fall of Bitcoin. The forecasts for rate cuts at the September meeting of the Federal Open Market Committee (FOMC) have been revised downwards, adding to the overall uncertainty.
Crypto market participants have watched with frustration the return of BTC/USD to familiar levels. The popular trader Skew noted manipulative liquidity movements on exchanges, worsening the situation. Additionally, Bitcoin miners are going through a phase of capitulation, adding further pressure on the price.
The crypto market is currently experiencing a period of intense turbulence, marked by a significant drop in Bitcoin and altcoins. However, pockets of resilience and optimism persist, offering reasons to hope for a future recovery. Upcoming economic and political decisions will be crucial in determining the market’s trajectory.
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Fasciné par le bitcoin depuis 2017, Evariste n’a cessé de se documenter sur le sujet. Si son premier intérêt s’est porté sur le trading, il essaie désormais activement d’appréhender toutes les avancées centrées sur les cryptomonnaies. En tant que rédacteur, il aspire à fournir en permanence un travail de haute qualité qui reflète l’état du secteur dans son ensemble.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
