The cryptocurrency market is off to a weak start to the week, with Bitcoin price falling again. The BTC unit has lost 2.81% of its value in the last 24 hours, falling to $100,794.
The weekly loss stands at 6.25%. The market-wide sell-off, coupled with growing macroeconomic uncertainty, appears to have significantly shaken investor confidence.
One of the main drivers of the sell-off in Bitcoin was the hawkish remarks made by Fed Chair Jerome Powell at his latest press conference. Powell stated that a December interest rate cut was “not guaranteed” and argued that economic data still needed to be closely monitored.
This announcement dampened market expectations for a year-end interest rate cut, putting pressure on risk assets. The crypto market, particularly Bitcoin, is among the assets most responsive to the Fed’s tight monetary policy signals.
The US Congress’s refusal to reach a budget agreement has caused the government shutdown to extend beyond record levels. This situation is significantly negatively impacting not only the macroeconomic outlook but also market risk appetite. As uncertainty in the crypto market increases, so too does volatility.
The ongoing tariff jurisdiction crisis between the White House and the Supreme Court is raising concerns about the global trade landscape.
With the declines, there was a liquidation of $575 million in the cryptocurrency market in the last 24 hours, $407 million of which were in long positions.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/bitcoin-price-plunges-again-heres-why-and-the-latest-data/