Here’s Why Bitcoin, ETH and Crypto Prices Are Falling Today.
Bitcoin (BTC) and Ethereum (ETH), along with other cryptocurrencies, have recently experienced a noticeable decline in their prices. This decline was caused by a number of factors, particularly market sentiment, monetary policy actions and the crypto derivatives market.
Declining optimism and Analysis of JP Morgan
JP Morgan He expressed concern about the continuous sell-off in Bitcoin as the market remains overbought. As a result, financial institutions’ optimism regarding the possibility of a price increase by the end of the year appears to have diminished.
This sentiment is partly driven by expectations that Bitcoin supply will decrease after the halving and the assumption that there will be continued inflows into spot Bitcoin exchange-traded funds (ETFs). JP Morgan, on the other hand, observes a decrease in these inflows, indicating that investor sentiment has changed.
Monetary Policy of the Federal Reserve
US decision Federal Reserve Keeping the Fed funds rate steady at 5.25%-5.5% is consistent with market expectations. However, despite this stubbornness, US Federal Reserve Chairman Jerome Powell announced his prediction for three interest rate cuts this year and announced that additional interest rate cuts are predicted for 2025. This decision affected the dynamics of the market, as seen in derivative markets. This shows that there is an increase in large volume transactions.
Adam, a market researcher from GreeksLive, noted that almost 30% of all options trades are high-volume trades, with the majority of trades purchasing call options.
As a result, the BTC and ETH options market saw significant activity, with $2.6 billion in options expiring. The result has been speculation about the possibility of BTC prices rising to an all-time high. This result is an assumption regarding the possibility of Bitcoin prices rising to an all-time high.
According to the analyst, Markus ThielenHowever, he has a more conservative position, predicting that Bitcoin will undergo another correction and drop to $52,000-$54,000. Despite the bearish forecast, analysts at Bernstein increased Bitcoin’s year-end target from $80,000 to $90,000, reinforcing Bitcoin’s potential regardless of current market volatility.
Spot Bitcoin ETF Impact and Outlook
Surrounding dynamics Identify Bitcoin ETFs It also contributed to the market’s downward trend. Bitcoin ETFs have been experiencing net outflows for several days; The Grayscale Bitcoin Trust ETF (GBTC) is experiencing large outflows that are not offset by inflows into other funds such as the iShares Bitcoin Trust (IBIT).
But the outflow trend raises doubts about the continued popularity of Bitcoin ETFs despite the overall net inflows they have attracted since their inception.
Also Read: Blackrock, Fidelity Break Record with Number of Logins for 49 Consecutive Days
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Kelvin is a distinguished author specializing in crypto and finance, with a bachelor’s degree in Actuarial Science. Known for her sharp analysis and insightful content, she is fluent in English and specializes in comprehensive research and on-time delivery.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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