Crypto Prices Plummet: Bitcoin and Ether Face Significant Losses
Bitcoin and Ether – Bitcoin has seen a 2.7% decline over the past 24 hours, trading at around $58,551 as of Monday, 1:20 am EST. This drop comes as investors are on edge, anticipating a potential interest rate cut by the Federal Reserve later this week. Over the weekend, Bitcoin peaked at $60,600, but the recent downturn has pushed it back to familiar levels as market jitters take hold. According to The Block’s price tracker, Ether has also seen a significant drop of 5.38%, now trading at around $2,289.
Trump Assassination Attempt and Market Reaction
The timing of this price drop coincides with reports of another assassination attempt on former U.S. President Donald Trump, now a Republican candidate for the 2024 election. While the connection between this incident and the crypto market dip remains unclear, some analysts have noted the coincidence. Min Jung, an analyst at Presto Research, said:
“While it is difficult to say that the price drop is directly related to the assassination attempt on Trump, the timing does coincide with a sharper move lower in crypto markets. However, we believe this is more likely due to crypto giving up the gains seen on Friday and a broader risk-off movement ahead of the FOMC meeting.”
FOMC Meeting and Expected Rate Cut
The Federal Open Market Committee (FOMC) meeting, scheduled for Tuesday and Wednesday, is anticipated to result in an interest rate cut. Investors are watching closely, as the probability of a rate cut could have significant effects on both crypto and traditional markets. According to CME’s Fed Watch tool, there’s widespread speculation about a potential 50 basis point cut.
Market Movements Tied to Broader Risk Factors
Analysts have pointed out that Friday’s brief rally in crypto markets was likely driven by factors outside the cryptocurrency space. Augustine Fan, head of insights at SOFA.org, commented on the recent price action:
“The truth is that we are still at $58,000, and [the Bitcoin price] hasn’t moved in two weeks outside of a small break to $54,000 and $60,000, so all of this is really noise. The possible reason crypto went up on Friday is due to the massive squeeze in SOFR futures (50 basis point cut) and the resulting equity rally, rather than anything crypto-specific. We are failing to see a carry-through of that momentum in today’s session.”
Trump Incident a “Non-Factor” for Crypto Markets
Despite the media attention surrounding the Trump assassination attempt, Fan believes that it has little impact on the broader crypto market. He stated:
“The Trump assassination attempt is a non-factor for macro markets for now.”
FAQ
Why has Bitcoin’s price fallen recently?
Bitcoin’s price has dropped by 2.7% over the past 24 hours, changing hands at around $58,551. This decline coincides with reports of another assassination attempt on former U.S. President Donald Trump and widespread speculation about an upcoming interest rate cut by the Federal Reserve.
How much has Ether’s price decreased?
Ether has slid by 5.38% over the same time period, trading around $2,289. This decline reflects a broader downturn in the cryptocurrency market.
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