Bitcoin’s price fell over 5% to $96,200 due to strong U.S. economic data signaling fewer Federal Reserve rate cuts in 2025. This decline resulted in a market capitalization reduction to $1.907 trillion, while trading volume surged by 22.6%. The cryptocurrency market saw widespread declines across major altcoins, resulting in a total market cap drop of 6.15%. Analysts caution investors to monitor key support and resistance levels.

In the wake of recent strong U.S. economic data suggesting fewer interest rate cuts by the Federal Reserve in 2025, Bitcoin experienced a decline of over 5%, trading at $96,200. This drop led to a significant decrease in Bitcoin’s market capitalization, bringing it down to approximately $1.907 trillion, with Bitcoin’s dominance in the cryptocurrency market standing at 56.8%. During this period, trading volumes surged by 22.6% to $61.6 billion, illustrating heightened activity despite the price drop. Market forecasts now indicate only one anticipated rate cut in 2025, a reduction from previous expectations of two cuts.

At 10:43 am IST, Bitcoin displayed a significant intraday fluctuation, achieving a high of $102,022 and a low of $96,132. Experts observed that the recent spike in the U.S. 10-year treasury yield, now at 4.68%, prompted a swift sell-off in crypto assets, resulting in the liquidation of $504 million in long positions. According to Vikram Subburaj, CEO of Giottus, this event marked the first major leverage shakeout of the year. Edul Patel, CEO of Mudrex, identified new support for Bitcoin at $94,500, with immediate resistance at $98,600, signaling important pricing levels for potential recovery.

In addition to Bitcoin, the broader cryptocurrency market witnessed significant declines, with major altcoins such as Ethereum, XRP, and BNB all taking substantial hits. The global cryptocurrency market cap fell by 6.15%, totalling $3.36 trillion, while stablecoins accounted for approximately 92.97% of the total 24-hour crypto market volume, amounting to $158.08 billion.

The current technical outlook suggests Bitcoin may continue its bearish trend, with potential price movements projected downward towards $95,195. Should prices break below this level, further declines could be anticipated, potentially targeting support levels around $90,000 and $87,055. Conversely, sustained trading above $99,785 may signal a reversal in this trend, allowing for a bullish recovery.

Bitcoin, the largest cryptocurrency by market capitalization, is known for its volatile price movements, heavily influenced by economic indicators and government monetary policy. Recently, the U.S. economic landscape demonstrated stronger than expected performance, leading to anticipations among investors that the Federal Reserve would implement fewer interest rate cuts than initially predicted. These expectations directly impact market sentiment in the cryptocurrency sphere, highlighting the interconnectedness of traditional finance and digital assets. Market players closely monitor the Fed’s actions and projections as they provide insights into future interest rates, which in turn affect the flow of investor capital across various asset classes, including cryptocurrencies. As rate cut expectations diminish, investors may reassess their risk exposure in highly volatile markets, thereby prompting price corrections.

In conclusion, Bitcoin’s recent decline mirrors broader market reactions to strengthened U.S. economic indicators and revised Federal Reserve rate expectations. As the cryptocurrency experiences increased trading volumes alongside a notable drop in price, both investors and market analysts remain cautious, emphasizing the importance of observing key price support levels. Continuous scrutiny of macroeconomic indicators will be essential for predicting Bitcoin’s trajectory as well as the overall health of the cryptocurrency market moving forward.

Original Source: m.economictimes.com

Related posts:

Bitcoin Falls Below $92,000 as Market Faces Uncertainty and Decline in Cryptocurrencies Bitcoin Surges to $100K Amid Federal Reserve Rate Cut Anticipations Bitcoin Surges Past $100K Amid Fed Rate Cut Speculations; Major Altcoins Rally Bitcoin Experiences Significant Drop Following Strong U.S. Economic Data