Bitcoin Price Correction to $92.5K Due to Fed Rate Concerns, Analysts Say
Bitcoin’s price correction to $92,500 was influenced by concerns about the Federal Reserve’s tightening monetary policy for 2025. This correction followed a brief rise past $100,000, with analysts projecting potential further declines before a rally. Despite this, long-term forecasts remain positive, predicting substantial growth for Bitcoin by late 2025.
The recent correction in Bitcoin’s price saw it dip to $92,500, influenced primarily by concerns over the US Federal Reserve’s monetary policy tightening for 2025. Following a temporary rise above $100,000 on January 7, BTC’s decrease was linked to the delayed expectations of a rate cut from the Federal Reserve, as indicated by Ryan Lee, the chief analyst at Bitget Research. This shift in monetary policy expectations resulted in significant liquidations of leveraged long positions, amounting to over $631 million within a single day.
Market analysts suggest that Bitcoin may drop below the $90,000 support level prior to initiating a potential rally above $126,000. John Glover, the chief investment officer at Ledn, expressed that a further correction might be necessary to address the current illiquidity in the market. Moreover, Rekt Capital emphasized the importance of holding above the $91,000 level to avoid additional downside risks. Despite the current dip, some analysts maintain an optimistic outlook for Bitcoin, predicting significant growth, potentially exceeding $150,000 by late 2025 due to an anticipated increase in global money supply.
Bitcoin, a cryptocurrency that has gained immense popularity, is not immune to the fluctuations caused by macroeconomic factors, particularly monetary policies set by central banks like the US Federal Reserve. The relationship between Bitcoin’s price movements and interest rate expectations is crucial, with alterations in policy creating ripples across the cryptocurrency market. Recent discussions among analysts highlight the ongoing concerns regarding the Federal Reserve’s stance on interest rates as a pivotal factor influencing Bitcoin’s trajectory.
In summary, the recent decline in Bitcoin’s price to $92,500 underscores the significant impact of the US Federal Reserve’s monetary policy on cryptocurrency markets. Analysts describe the current situation as a potential consolidation period, with some projecting further declines before the onset of a more bullish rally. Nonetheless, long-term forecasts remain optimistic, with expectations for Bitcoin to reach new highs influenced by substantial investments driven by changes in global economic conditions.
Original Source: www.tradingview.com
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