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The cryptocurrency world is currently experiencing a period of great turmoil and a dark day for the market. Once-booming Bitcoin has suffered a major drop and is perilously close to $60,000. Meanwhile, altcoins are not far behind, also recording significant declines. As the cryptocurrency world struggles to come to terms with this new reality, there are still signs of optimism. Let's explore the causes, impacts, and outlook for this unexpected decline.
Bitcoin at a crossroads
Bitcoin price has fallen towards $60,000, ending a string of strong performances. At the time of writing, the flagship cryptocurrency is trading at $60,700, down 3% in a day and 1.4% in a week. Bears have taken control, pushing Bitcoin towards this critical level.
The chart shows a sharp drop followed by a shaky stabilization. The key question is whether this support will hold or if the bears will continue their attack and push Bitcoin below this important psychological threshold. The next few hours and days will be decisive for Bitcoin's immediate future.
Meanwhile, the market is closely monitoring announcements that could affect the price of the flagship cryptocurrency, creating a tense atmosphere as investor sentiment vacillates between fear and hope.
Most of the larger altcoins were also affected by this dark day: Ethereum, for example, recorded a drop of nearly 3%, BNB 2.2%, SOL 1%, DOGE 1.4%. Even PEPE was not able to escape the trend, dropping 5.6%.
However, not all is gloomy in the altcoin world. XRP, for example, has managed to remain in the black. This resilience is explained by the positive updates in the lawsuit between Ripple and the SEC. Judge Amy Jackson's recent ruling dismissed the regulator's complaint against Binance, sending a breath of optimism into the price of XRP.
Despite the gloomy outlook, these exceptions show that certain factors can still have a positive impact on certain altcoins, even in an overall declining market.
Economic and political factors
The recent sharp drop in Bitcoin can also be explained by speeches and decisions made by economic authorities.
Federal Reserve Chairman Jerome Powell recently expressed concern about future interest rate cuts.
Speaking at an event in Portugal, he stressed that more compelling evidence on inflation was needed before proceeding with monetary adjustment.
The Fed's warning dampened market enthusiasm and led to a drop in Bitcoin as it revised down its forecast for a rate cut at the September Federal Open Market Committee (FOMC) meeting and increased overall uncertainty.
Crypto market participants are watching with frustration as BTC/USD returns to normal levels. Popular trader Skew noted that liquidity manipulation efforts on exchanges are making the situation worse. Additionally, Bitcoin miners are entering a surrender phase, putting further pressure on the price.
The cryptocurrency market is currently undergoing a period of intense turmoil, marked by a significant sell-off in Bitcoin and altcoins. However, some resilience and optimism remain, giving hope for a future recovery. Future economic and political decisions will be crucial in determining the trajectory of the market.
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Fascinated by Bitcoin since 2017, Evaristo has not kept a record on the issue. If he is most interested in trading, this essay will help him to explore all the leading centers on cryptocurrencies. As an editor, I aspire to permanently produce high-quality work that reflects the state of the sector as a whole.
Disclaimer
The views, thoughts and opinions expressed in this article are those of the author and should not be taken as investment advice. Please conduct your own research before making any investment decisions.
