The cryptocurrency market has been experiencing significant volatility due to recent events. Both Bitcoin and Ethereum lost around 5% in value amid concerns about the Federal Reserve’s anticipated interest rate cuts. However, the drop in Bitcoin wasn’t solely due to Fed fears. On Sunday, the FBI reported an assassination attempt on former U.S. President Donald Trump in Florida. While Trump’s safety was confirmed, this event heightened market uncertainty.
Fear Levels Return for Bitcoin
Bitcoin had previously surged above the $60,000 mark, raising hopes of a new bull run. However, recent developments have quickly brought this rally to a halt. The uncertainty and fear in the market are forcing investors to be more cautious. As Bitcoin tests deep fear levels again, the market remains on edge. The only thing that could push prices higher now is a strong positive catalyst. Ethereum also took a hit, dropping 5.25% in value, marking its worst single-day decline since the beginning of August.
In addition to Ethereum, Cardano (ADA) fell by 5%, while Solana (SOL) dropped by 4%. These sharp declines are seen as part of the broader downturn in the cryptocurrency market. Vice President Kamala Harris condemned the attack on Trump via social media, while Elon Musk also weighed in, criticizing the assassination attempt.
What’s Next for Bitcoin?
Crypto analyst Jason Pizzino believes that Bitcoin is currently in a consolidation phase, having corrected by 33% from its March high. However, he also suggests that this correction could be nearing its end. Pizzino sees long-term potential for Bitcoin, stating that investors who buy at these levels—below $60,000—could look back and view it as a good buying opportunity.
He emphasizes the importance of the $44,600 support level for Bitcoin. If it holds above this, the bull cycle may continue. Looking ahead, Pizzino predicts a breakout around the end of 2024 or early 2025, aligning with previous market cycles. While warning against overly optimistic predictions of Bitcoin reaching $1 million, the analyst remains confident about significant long-term gains.
FUD Surrounding Ethereum
Ethereum also saw a sharp decline, losing 6% in value in the last 24 hours, falling from $2,425 to $2,260. This drop reflects the broader nervousness in the market, amplified by negative news spreading on social media. Ethereum developer antiprosynthesis drew attention to this, stating on X (formerly Twitter) that “half of my feed is full of ETH FUD.”
Economist Alex Krüger compared Ethereum to Brazilian footballer Neymar Junior, implying a negative view on its performance. Crypto analysts James Check and KALEO mocked ETH’s price drop with sarcastic memes, while The Crypto Dog highlighted that Bitcoin Cash (BCH) outperformed Ethereum over the past year.
Fed’s Rate Decision Looms
This week is a critical one for the U.S. economy, as the Federal Reserve is set to announce an interest rate cut on September 18. According to the CME Fed Watch tool, there’s a 41% chance of a 25-basis point cut and a 59% chance of a 50-basis point cut. Some analysts warn that this anticipated cut could lead to a downturn in the crypto market. Analysts at Bitfinex suggest that the U.S. central bank’s decision could trigger a short-term decline in markets.
Turkish NY Radio will continue to monitor these developments closely as the market prepares for further potential shifts.
