Hot Development: Bitcoin (BTC) Dropped More Than $ 3000 In 1 Hour! Why Is BTC Falling?
Just the volatility that the price has experienced in the last 75 minutes teaches us a lot about the market. While India vetoed crypto bans, BTC, which was on the rise, suddenly wrote a 5% loss. Information was leaking that India was working on crypto bans. This situation created a certain amount of fear in the market, but the incoming veto pushed the BTC price up. But that didn’t last long.
Why Is Bitcoin Falling?
Fed Chairman Powell stated that the threat of rising inflation is growing, he will use tools to stop it. Affected by the statements, Bitcoin lost about $ 3,000 in an hour, down 5%.
1 hour and 10 minutes ago, we shared a news that Bitcoin exceeded $ 59,000 and evaluated the possibility of continuing the rise. However, BTC could not maintain these levels even for 1 hour. The statement made to reduce asset purchases earlier, of course, negatively affected the assets against the dollar. Cryptocurrencies, commodities and more have slumped against the prospect of the FED releasing less dollars to the market. Fewer dollars means a more valuable DXY. DXY, on the other hand, shows the strength of the dollar against predetermined currencies.
At the time of writing, Bitcoin continues to find buyers at $ 57,036.
When is the Fed Meeting?
The meeting will take place on 14-15 December. The FED does not suddenly raise interest rates by saying, “I have increased interest rates,” as a surprise. It prepares the markets beforehand if there will be an increase in the next meeting. A significant portion of investors expected the 0.25 basis point increase to come in June at the earliest. However, the uncertainty of the new variant and increasing inflation may also cause this date to be pulled earlier.
It seems likely that asset purchases will decrease slightly, as in the last meeting. Of course, until December 15, details about the effects of the variant will become more clear. If current vaccines are proven to be effective and the variant doesn’t turn out to be as monstrous as exaggerated, crypto investors may still have a chance.
It should be noted that the possibility of reducing the effects of the pandemic may trigger a new rally for BTC. Therefore, it will be useful to follow news flows closely.