On Wednesday, the Federal Reserve declared its intention to discontinue its rate hike cycle, causing significant disruption in financial markets, with Bitcoin experiencing a decline of over 10% in the hours that ensued.
Bitcoin’s rapid decline can be attributed to several factors, including the Federal Reserve’s recent decision to cease rate hikes, resulting in reduced demand for risk assets such as Bitcoin, and the heightened uncertainty in the market, which has made investors more hesitant to undertake risks.
The combination of these factors has led to a greater outflow of money from Bitcoin markets than inflow, placing bullish investors at a disadvantage, and there is a likelihood that Bitcoin may experience a decline to $20K or $30K shortly.
Nonetheless, it is crucial to bear in mind that Bitcoin is an unstable asset, and it is not feasible to anticipate its price with absolute certainty; therefore, there is a possibility that Bitcoin could recover in the upcoming weeks or months, and there is always the possibility of it attaining new record highs.
If you are contemplating investing in Bitcoin, it is crucial to conduct your own research and comprehend the associated risks, as Bitcoin is a high-risk asset, and there is a possibility that you could lose your entire investment.
