Bitcoin Faces Potential 20-30% Decline as Crypto Markets Experience $1.1B Liquidation
Bitcoin encounters significant losses as markets react to changes in interest rates, with potential for deeper declines amidst a broader market downturn.
Key Points:
- Bitcoin revisits the bottom of its local range after the Federal Reserve’s interest-rate cut led to a sharp drop.
- Traders who anticipated a price increase faced significant losses, with long liquidations nearing $1 billion.
- If the stock market continues to decline, Bitcoin could see drops of up to 30%.
Bitcoin (BTC) hit new weekly lows as Wall Street opened, ignoring positive macro indicators.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
BTC Price Pressures $107,000 Range Floor
Data from Cointelegraph Markets Pro and TradingView showed that the BTC price dipped near $107,000, marking a crucial support level for bulls.
Bitcoin post-price action: @DaanCrypto tweets about BTC levels to watch - Analysis highlights key levels: $103K, $107K, $111K, and $116K, and predicts Bitcoin’s movements in reaction to stock trends.
Crypto’s downturn follows a 0.25% interest-rate cut by the US Federal Reserve, contributing to the market’s decline. Analysts are concerned that deteriorating stock prices could trigger a larger fall in Bitcoin’s value.
Trader Insights
Some traders believe Bitcoin’s performance is typical around Fed rate meetings, while others have cautioned that Bitcoin’s current stability compared to rising stock prices indicates potential future weakness.
Warning from Trader Roman: “If the S&P 500 retraces, I expect Bitcoin to drop by 20-30%.”
CoinGlass reports that October is likely to close with negative returns for Bitcoin, a first since 2018. Given the historical average gain of 20% in October, this trend underscores the current market struggles. This article does not constitute investment advice.
