Key Insights:
- Bitcoin price has recorded a massive pullback from its local high of $116k and rested at $110k.
- The analysts said that the dip could be due to post-FOMC profit-taking.
- A top analyst has warned of a likely BTC price correction to $80k.
Bitcoin price has once again recorded a massive pullback, wiping out much of its recent gains and falling to as low as $108k in the last 24 hours. This indicates that despite the latest rate cut optimism, the market participants turned cautious.
For context, the US Federal Reserve has announced a 25 bps rate cut at its latest gathering, which comes in tandem with the market expectations. However, it seems that the conditional approach of Fed Chair Jerome Powell has spooked traders, which might have triggered the latest selling pressure in the risk-bet assets.
In addition, analysts highlight that the crypto market usually faces volatile sessions post-FOMC. Having said that, the market was already betting towards a potential pullback, with Powell’s comment further weighing on the sentiment.
Now, the market watchers are looking for potential cues on the potential future direction of BTC price. Amid this, top experts have warned of a likely pullback in the price of Bitcoin, with one expert hinting at a crash to $80k.
Bitcoin Price Slips Despite 25 bps Fed Rate Cut
BTC price today was down nearly 2.5% and traded at $110,200 at the time of writing, but its trading volume soared 6% to $70 billion. Notably, the crypto has retested the $108,000 level in the last 24 hours, falling from its local high of $116,000.
This indicates that traders have booked massive profits after the latest Fed rate cut announcement. Usually, the lower rates help the risk-bet assets like BTC, gold, and others, but it appears that the investors are still waiting on the sidelines.
Meanwhile, one of the potential reasons behind the latest Bitcoin price dip could be the hawkish comments from Jerome Powell. Post FOMC announcement, Powell noted that the central bank is in no rush to announce another rate cut this year.
Besides, he noted that the upcoming decision would depend on the market conditions and upcoming data. Following this, the rate cut odds for December fell to only 50% from the previous bets of around 90%.
Why is BTC Price Falling Today?
As already discussed, the post-FOMC volatility could be one of the main reasons behind the latest Bitcoin price dip. Commenting on the matter, analyst Merlijn The Trader said that “Bitcoin History Repeats Until It Doesn’t.”
He noted that the last three US FOMC meetings have caused a BTC price dump by 10%, 6%, and 8%, respectively. Having said that, he has cautioned the investors to position their bets accordingly.
Highlighting the same pattern, analyst Ali Martinez said that five of the six FOMC meetings so far this year have seen Bitcoin price corrections. Having said that, it appears that BTC USD is repeating the previous patterns.
On the other hand, the waning institutional interest has also weighed on the investors’ sentiment. According to Farside Investors’ data, the US Spot Bitcoin ETF has reported an outflow of $470 million, ending its five-day inflow streak.
Bitcoin Price May Crash to $80k, Analyst Predicts
Amid the ongoing gloomy momentum in the broader crypto market, a top analyst has warned of a brutal Bitcoin price crash. In a recent analysis shared on X, analyst Crypto Patel said that if the selling pressure continues, it could slip to $105k next.
Besides, the continuation of the bearish trend could drag down the BTC USD price to $93k or even $76k, he noted. However, if BTC price manages to break through the resistance at $117k, it could extend its upward move to $150k.
Having said that, the expert has urged investors to keep a close track of the key Bitcoin price levels ahead. In case the flagship crypto fails to break through $116k, a possible correction to $76k looms.
So, investors are advised to exercise caution and manage their portfolio accordingly amid the ongoing volatile scenario in the market.