Bitcoin (BTC) is currently trading around $29,900 and experiencing a drop from its recent peak of $29,900. The market sentiment is tense due to recent events surrounding Curve, which is causing investors to wonder if Bitcoin will drop to $25,000. So, what are the factors that could affect the price of the cryptocurrency in the coming days?
The Impact of Fed Decisions on Bitcoin!
The recent announcement by the US Federal Reserve that it will increase the lending rate by 0.25% has provided support for Bitcoin. Such news tends to make the cryptocurrency market unstable and difficult to predict. An increase in interest rates can affect different asset classes such as stocks, commodities, and cryptocurrencies.
This situation can create a ripple effect, and investors closely monitor their investments during these periods of uncertainty. Curve Finance, a well-known decentralized exchange (DEX), recently experienced a major security breach that affected various Ethereum pools and an Arbitrum-based liquidity pool.
Curve Finance’s Heavy Toll!
The incident over the weekend resulted in the theft of millions of dollars. According to blockchain security firm PeckShield, the stolen amount has alarmingly increased to $52 million. Curve Finance’s DEX allows users to swap similar assets such as Staked Ethereum or Tether’s USDT and Circle’s USDC with Ethereum.
Analysts and investors are cautious due to potential security vulnerabilities in decentralized platforms, which could indirectly affect the price of Bitcoin while it continues to be the leading cryptocurrency in the market. Crypto experts predict that the positive trend of Bitcoin will continue throughout the year, especially as the global economic situation becomes clearer in the US and UK markets.
Investors are hopeful for a potential rally that could bring further growth to Bitcoin in the coming months. Additionally, the recent support provided by the expectation of a 0.25% increase in the lending interest rates by the US Federal Reserve has contributed to the revival of optimism in the market.
