Bitcoin Faces Pressure as Price Drops Below $93,000
FOMC
UTED
BTC
IMX
DROPS
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Bitcoin (BTC) experienced a downward movement in the last 24 hours, falling below the $93,000 mark. This decline halted the recent upward trend of the largest cryptocurrency. The price drop coincided with over $430 million in liquidations in the futures market. Additionally, the five-day net inflow series from spot Bitcoin ETFs in the United States ended on the first trading day of the week with an outflow of $438 million. MicroStrategy’s shares also lost 4.4% of their value on the same day.
Why Are Traders Concerned?
The recent drop in Bitcoin follows MicroStrategy’s record purchase of $5.4 billion in BTC last week. However, this purchase failed to create a sustained upward momentum in the market. The upcoming holiday period in the U.S. and the lack of a significant catalyst to drive prices higher have put the $100,000 target on hold for now. This situation has intensified concerns among traders about increasing volatility.
A similar trend is observed with Ethereum . The increase in “put” options compared to “call” options in ETH’s implied volatility reflects a general bearish trend in the market.
Will Upcoming Economic Data Impact the Market?
The recent pause in Bitcoin’s rise has led to a more cautious stance against short-term risks in the cryptocurrency market. Traders are focused on the U.S. Federal Reserve’s (Fed) FOMC minutes to be released tonight and the Personal Consumption Expenditures (PCE) data to be announced on Wednesday. The impact of these data points on the market is eagerly anticipated. If the results differ from expectations, the pressure on the cryptocurrency market could increase further.
QCP Capital analysts view Bitcoin’s current correction as a normal market movement. However, traders need to closely monitor how upcoming economic data and market conditions will affect prices. There are stronger catalysts needed for Bitcoin to reach the psychological level of $100,000.
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