Bitcoin has had a turbulent start to the week, with its price swinging between highs and lows, sending shockwaves across the crypto market. After starting above $60,000, BTC dipped under $58,000 on Monday, setting the stage for what was anticipated to be a volatile week. The main event? The U.S. Federal Reserve’s highly anticipated Wednesday meeting to discuss a cut in key interest rates.
As anticipation mounted, Bitcoin soared back above $61,000 before the central bank confirmed a 0.5% rate cut. In the wake of the announcement, BTC experienced a rollercoaster ride, with volatility surging and prices fluctuating wildly. Despite this, bulls managed to push the asset to a new three-week high of just over $64,000 on Thursday. However, the euphoria was short-lived, as Bitcoin soon retraced and now hovers around $63,000.
Can Bitcoin Hold Its Ground?
The current $63,000 price level, while still impressive, has raised concerns among traders and analysts. The question remains: Can Bitcoin maintain this level, or is it in for another correction?
The Federal Reserve’s decision to cut rates initially fueled optimism in the crypto market, as lower interest rates tend to drive more investment into riskier assets like cryptocurrencies. However, the sudden spike and subsequent pullback have some market watchers cautioning that BTC’s run could be losing momentum. With several indicators pointing to potential selling pressure, further declines could be on the horizon.
Altcoins Slip Into Retracement Mode
While Bitcoin has captured most of the headlines, the altcoin market has seen its fair share of drama. After surging alongside BTC, many top altcoins have entered a retracement phase. Ethereum (ETH), XRP, Binance Coin (BNB), TRON (TRX), and Shiba Inu (SHIB) have all experienced minimal price movement, with changes of less than 1%.
However, other prominent altcoins like Solana (SOL), Dogecoin (DOGE), Cardano (ADA), Chainlink (LINK), and Bitcoin Cash (BCH) have seen more significant declines, falling by 1-2%. The hardest-hit assets include Toncoin (TON), Avalanche (AVAX), and NEAR Protocol, all posting declines of 4-5%. Toncoin, in particular, has dropped to $5.5, while Avalanche now trades at $27, and NEAR sits at $4.3.
WIF Leads the Losers
Among the top 100 altcoins, WIF has emerged as the biggest loser, plummeting by nearly 10%. Other notable drops come from lesser-known assets like NOT, BRETT, POPCAT, and AR, all of which have suffered significant losses.
With the altcoin retracement and Bitcoin’s struggles, the total cryptocurrency market cap has shed approximately $40 billion in just 24 hours. It now sits below $2.3 trillion, highlighting the ongoing uncertainty in the market.
Also Read: Robert Kiyosaki Predicts Bitcoin to Hit $1 Million – AI and National Debt to Fuel Surge
What’s Next for Bitcoin and Altcoins?
As the dust settles, traders are watching closely for the next big move. Bitcoin’s ability to hold above $63,000 will likely dictate market sentiment for the coming days. Any significant drop could push BTC lower, triggering further sell-offs across the altcoin market. On the flip side, if Bitcoin stabilizes, it could set the stage for a fresh rally, reigniting the broader crypto market.
For now, all eyes remain on Bitcoin as it navigates another volatile week in the ever-changing cryptocurrency landscape.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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