The largest cryptocurrency by market value quickly turned downward after the US market opened. This decline seems primarily due to weakened expectations of Fed rate cuts. Apart from the SEC’s decision against the company named Salt Blockchain, there was no significant event.
Bitcoin Price Drops
BTC was at $54,500 at the time of writing and hit a daily low of $54,522. Many analysts mentioned that the ongoing consolidation below $58,000 could open the door to new lows. Despite positive US data, bulls failed to prevent the decline due to the impact of high-volume sales.
Poor employment data, which opened the door to the possibility of more Fed cuts, is now causing a decline in US markets. BTC, which shares a positive correlation with stock market declines, also took its share of this drop.
- S&P 500 -1.37%
- Nasdaq -2.11%
Concerns about a global economic slowdown and Japan’s potential for further rate hikes seem to have hit risk markets. The probability of a 25 basis point Fed rate cut in September is 63%, and the probability of a 50 basis point cut is 37%.
