A few minutes before the US markets opened, Bitcoin‘s price exceeded $70,000 but has now fallen below $68,000. The price dropped rapidly and accelerated its decline about half an hour ago after a brief pause. Despite investors being hopeful due to Trump’s statements and strong volume in the ETF channel, sales were stronger.
Why is Bitcoin Dropping?
There is a classic trend before every Fed meeting. Investors’ risk appetite for BTC and altcoins weakens. Although signals for a discount in September are expected for this meeting, investors are anxious. Another reason for the anxiety is that Mt. Gox still holds $5 billion worth of BTC.
Investors who made significant short-term gains assumed that $70,000 would not be easily surpassed and thus turned to selling. We saw this in the rapid profit-taking during today’s $70,000 test. In the past, those trying to profit from such volatile movements were caught off guard by large upward candles, but BTC has not managed this for weeks.
Sales deepening to $66,000 could trigger larger losses in already struggling altcoins. The safe zone for BTC is $68,200.
