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Bitcoin 
$0.000035, the leading cryptocurrency, recently dropped back to the $93,000 mark, intensifying concerns among traders. The decline, particularly troubling for altcoin investors, has several contributing factors. However, since the trend has not fully shifted to a downward trajectory, a significant panic selling wave in altcoins has yet to commence. What are the predictions for Bitcoin? Why are cryptocurrencies experiencing a downturn?
Bitcoin (BTC)
BTC consistently sets new daily lows, with the price dropping to $93,085 at the time of writing. This follows a peak of $108,000 just days prior, marking a discouraging loss of over $10,000 for investors. Notably, Saylor announced last week that he made multi-million dollar purchases at $106,000.
Key support is currently at $91,000; if lost, prices could dip further to the $88,830 to $86,500 range. In a potential rebound, $98,000 is expected to act as a new support level, which could lead to renewed attempts to reach all-time highs.
BTC’s weekly loss nears 12%, while ETH has seen a decline exceeding 17%. The total market cap for cryptocurrencies has decreased to $3.24 trillion, with trading volumes falling to $156 billion.
Reasons for Cryptocurrency Decline
Powell’s recent statements on interest rates raised several concerns. The most alarming was the indication that the Fed only clarified the option of not reducing rates at this meeting. This means discussions about pausing rate cuts are still ongoing, suggesting certainty regarding rate pauses in January.
Additionally, Fed members have reduced next year’s interest rate cut predictions to two, indicating a more severe easing phase than previously expected. Investors are worried that another high inflation reading in January could trigger more significant market sell-offs, hence the reasoning behind today’s declines.
The performance of cryptocurrency markets in the first quarter of next year will largely depend on how serious Trump is about cryptocurrency regulations. If he swiftly implements regulations and takes concrete steps regarding BTC reserves, it could lead to a reversal in current trends.
