Bitcoin’s value has seen a notable drop of nearly 4%, falling below the $101,000 mark due to intense selling activity across the cryptocurrency landscape. This downturn occurs just ahead of the Federal Open Market Committee (FOMC) meeting, with former BitMEX CEO Arthur Hayes warning that Bitcoin might decrease to as low as $70,000 before it stages a recovery.
What Predictions Are Being Made?
Hayes has forecasted that Bitcoin will retreat to the $70,000-$75,000 range, which he believes will align with a minor financial crisis. He anticipates a swift recovery, projecting the price could soar to $250,000 by year-end.
How Will Altcoins Be Affected?
The slump in Bitcoin’s price is having a ripple effect on altcoins, leading to declines between 5% and 10% in cryptocurrencies like Ethereum, XRP, and Dogecoin. The selling of Bitcoin by long-term holders further exacerbates these losses.
Market Liquidations on the Rise
Liquidations in Asian markets have exceeded $548 million, primarily affecting long positions in both Bitcoin and various altcoins.
Significance of the Upcoming FOMC Meeting
As the first FOMC meeting since Donald Trump’s presidency approaches, the decisions made regarding interest rates are anticipated to have a substantial impact on the cryptocurrency sector.
Impact of External Factors
The emergence of China’s DeepSeek AI platform has resulted in a more than 3% decline in Nasdaq futures, intensifying the selling pressure on Bitcoin and the overall crypto market.
Ethereum has seen its price drop to $3,166, reflecting a 5.72% decrease. Solana and Dogecoin are not far behind, losing 10.27% and 8.25%, respectively. This downturn raises questions about the potential for an altcoin season beginning in early 2025. Nonetheless, experts like CryptoQuant CEO Ki Young Ju maintain that the bullish trend for Bitcoin is far from over, citing the importance of new retail investors in sustaining growth.
Attention is now on the FOMC meeting and various macroeconomic indicators, as these will likely dictate the trajectory of the crypto markets moving forward:
- Bitcoin could decline to $70,000 before rebounding.
- Altcoins are experiencing significant price corrections.
- Liquidations are occurring at an alarming rate in the markets.
- The FOMC meeting’s decisions are critical for market stability.
The unfolding events surrounding Bitcoin and the broader cryptocurrency market warrant close observation as traders and analysts prepare for potential volatility influenced by external economic factors.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/will-bitcoins-price-hit-70000-soon