Markets for Bitcoin and cryptocurrencies are in a state of uncertainty. Recent Fed announcements caused concern. Bitcoin (BTC), as experts watch closely, may be on the verge of a downward spiral.
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The Impact of Fed Announcements on Bitcoin and Cryptocurrency Markets
Recent Market Trends
Bitcoin may be the leader of a downward cryptocurrency trend. After recent Fed policy announcements, the market had hoped for a positive outcome. However, this optimism is now fading.
BTC price is below an important benchmark, which indicates a decrease in positive momentum.
Short-term Selling Pressure
The data shows that more owners who are short-term sellers sell. CryptoQuant says:
“Short-term holders transferred 33,155 bitcoins as shown by the 1w-1m spent output age bands. This could present immediate selling pressure.” – By @XBTManager
Support levels and price target
Some experts predict stable prices despite the fluctuations. Ali Martinez believes Bitcoin will remain stable around $55k. Binance users have bet heavily on the price.
He said:
“Here are key support levels to monitor based on the buying patterns of #Bitcoin investors: – New Whales: $63,450 – Binance Users: $55,540 – $BTC Miners: $44,400 – Long-Term Holders: $25,000”
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Bitcoin Dominance in the Altcoin Market
Bitcoin may soon gain ground on other crypto currencies. Benjamin Cowen predicts that BTC will reach 60 percent of the market.
He said:
“Looser monetary policy is coming. Powell made that clear. But #BTC dominance still likely goes higher in the short-term. Last cycle, dominance did not top until after rate cuts and QE began. 60% should still be on the menu.”
This is expected to change by 2025. BTC’s shares peaked in the past when the Fed cut interest rates and printed more money.
Future Outlook
The future of cryptocurrency is uncertain. Investors will continue buying BTC, even though prices may drop temporarily. Bitcoin’s direction will probably be influenced by future Fed announcements, economic trends and other factors.
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BTC price depends on many factors. It is important to maintain the connection between Fed announcements on crypto markets and prices.
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Source: watcher.guru