Bitcoin has hit a rough patch today, and if you’ve been following recent trends, you might be wondering, why is crypto down today? A deep look at Bitcoin’s recent performance, the Federal Reserve’s latest moves, and the impact of last week’s sell-offs reveals some interesting insights.
Bitcoin (BTC) recently saw its festive rally come to an abrupt halt. After a promising start, the attempt to surge past the $100k-mark was thwarted just after Boxing Day. This downturn aligns closely with the outcomes of the U.S. Federal Reserve’s meeting that started on December 17. The Fed’s cautious stance regarding interest rate cuts—predicting only two in 2025 instead of the anticipated four—sent shockwaves through the stock market, resulting in a over 2.5% drop in the Dow Jones, equating to roughly 1,150 points. While stocks eventually rebounded, Bitcoin didn’t receive the same kind of mercy.
With the crypto market typically mirroring Bitcoin’s movements, it didn’t take long for BTC to dip as well. In the past 24 hours alone, Bitcoin has dropped by 2.75%, and the altcoin market lost 2.31% of its value. On a closer look at the 4-hour chart, it’s clear that Bitcoin is caught in a bearish structure. This bearish sentiment flipped on December 19, signaling a shift in market dynamics. The A/D indicator has demonstrated a slow decline, indicating weaker buying pressure over the last week, further emphasized by a bearish crossover in the moving average.
Now, you might be asking, will Bitcoin regain its upward trajectory anytime soon? Based on data from Coinglass, there is a glimmer of hope. Although the recent sell-offs have stung, the cryptocurrency market grapples with these events, it’s essential for investors to remain vigilant. The sentiment could shift quickly, and understanding these fluctuations can make all the difference in positioning your portfolio for potential windfalls or safeguarding against losses. With increasing participation and interest, even during downturns, it’s a rollercoaster, but one worth keeping an eye on.
So, is your portfolio showing green? Don’t forget to check your returns regularly with the Bitcoin Profit Calculator.
