The price of Bitcoin (BTC) recently slipped below the $104,000 mark, hitting an intraday low of $103,353. This downward movement has raised eyebrows among investors, igniting worries about a potential deeper correction in the market.
Currently, Bitcoin is trading at $103,735, reflecting a decline of 2.7% in the wake of its recent surge to a remarkable high of $108,135 just a day prior. Such volatility is typical, especially with the Federal Reserve poised to make a crucial rate decision soon.
Market predictions indicate a stunning 97% likelihood that the Fed will go for a 25-basis-point rate hike. If they decide to keep rates steady instead, it could send shockwaves throughout the market, triggering a significant correction in Bitcoin’s price.
Highly regarded trader Josh Olszewicz recently shared insights, noting that $100,000 is a critical support level for bulls to defend. He highlighted that the daily close for Bitcoin seemed lackluster after peaking, suggesting that the cryptocurrency could be in a cautious phase leading up to the Fed’s decision and Jerome Powell’s upcoming speech.
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Despite these fluctuations, Olszewicz does not foresee a drastic fall to the $86,000 level for Bitcoin at this time. This allows investors to breathe a sigh of relief, at least momentarily.
Interestingly, Bitcoin’s struggles to gain traction come despite strong inflows into U.S.-based Bitcoin ETFs, which saw an impressive $733 million influx on Tuesday alone. This signals ongoing investor interest, even as the currency itself faces headwinds.
There is some optimism on the regulatory front as well. Reports indicate that Caroline Crenshaw, an anti-crypto commissioner at the SEC, who voted against the approval of Bitcoin ETFs, is likely to depart the agency next year. This follows the U.S. Senate Committee on Banking, Housing, and Urban Affairs’ failure to act on her renomination.
In summary, as Bitcoin hovers around $104,000, eyes are peeled on the Federal Reserve’s next move and the broader market reactions that could follow. Investors are undeniably feeling the tension, hoping for a favorable outcome that could stabilize or even propel Bitcoin back towards its record highs.
