Market Update 16th September 2024
By Manoj Dharra
After briefly surpassing $60,600 on Friday, Bitcoin has reversed course, falling sharply at the start of the week. The decline comes as traders take a cautious approach ahead of the highly anticipated two-day Federal Reserve meeting, which begins Tuesday. Market participants are closely watching for signals on interest rate changes.
Other major central banks are also in the spotlight this week. The Bank of Japan is expected to announce its latest rate decision on Tuesday, adding to the cautious sentiment in the market. The uncertainty surrounding the Fed’s potential rate cuts—rumored to be the first since 2020—has contributed to Bitcoin’s downturn.
Additionally, Bitcoin faced increased selling pressure amid reports that miners, struggling with profitability post-halving, have started to liquidate their holdings. This has further intensified the bearish trend in the market.
The broader crypto market is also feeling the effects. The total cryptocurrency market cap dropped 2.2%, falling to $2.03 trillion. The decline was exacerbated by reports of an assassination attempt on former U.S. President Donald Trump over the weekend, which rattled investor confidence.
Looking ahead, market participants are awaiting the outcome of the Federal Open Market Committee (FOMC) meeting and statements from Federal Reserve Chair Jerome Powell for indications of where the market might be headed.
Ethereum, meanwhile, has seen its price slip below $2,300. The decline was driven by renewed activity from dormant whale accounts, which began selling off large portions of their ETH after years of inactivity. Further contributing to Ethereum’s downward pressure was news that the Ethereum Foundation and co-founder Vitalik Buterin had also sold some of their holdings.
With both Bitcoin and Ethereum facing headwinds, the crypto market’s immediate future hinges on developments from the week’s central bank meetings and broader macroeconomic factors.
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