• Bitcoin is experiencing a pullback as the prices had been draining throughout the previous trading day.
• The primary catalyst for the downfall appears to be the investor’s speculation over the fresh rates.
• Data from Santiment shows that the profit transactions on BTC surged over 2.4 times compared to that of loss transactions.
Bitcoin, the leading cryptocurrency in the world, is experiencing a fresh pullback as the prices had been draining throughout the previous trading day. The crypto market has retraced its recent gains ahead of the next interest rates which are expected to roll out ahead of this week. As the prices have dropped, investors have been left wondering what the cause of the downfall is and whether the increase above $23,900 was calculated.
The primary catalyst for the downfall appears to be the investor’s speculation over the fresh rates. As the Federal Open Market Committee (FOMC) meeting is set to roll out fresh interest rates, this has had a negative impact on the crypto market as a whole, with Bitcoin and other cryptos dropping significantly after marking the yearly highs during the previous couple of days. The Bitcoin prices rose out of the consolidation and surged high but failed to mark the highs at $24,000 during the past weekend. The sudden rise also carried the possibility of a pullback, majorly to extract the profits after the fresh jump.
Data from Santiment shows that the profit transactions on BTC surged over 2.4 times compared to that of loss transactions. After the recent jump, the platform witnessed the largest profit/loss transactions ratio since Feb 17, 2021. This indicates that investors may be taking profit off the table, as the uptrend of Bitcoin could soon be facing a reversal. In addition, the fear of the FOMC meeting and its potential impact on the crypto market could also be driving investors away from Bitcoin, as the uncertainty around the outcome of the meeting keeps the market in flux.
In conclusion, the current decline in Bitcoin prices could be attributed to a combination of factors, including investors taking profits after the recent jump and the fear ahead of the FOMC meeting. As the meeting approaches, it is important to keep an eye on the market as the outcome of the meeting could have a significant impact on the prices of Bitcoin and other cryptocurrencies.