The cryptocurrency market is grappling with a downturn today, leaving investors on edge as major crypto assets including Bitcoin and Ethereum decline. In this report, we explore the potential reasons behind the recent sell-off by examining economic indicators, the Fed meeting, and the views of prominent crypto analyst il Capo. Here are the details…
Recent potential Bitcoin decline: What happened?
Investors are approaching the market cautiously as US Consumer Price Index (CPI) data reveals a cooling inflation rate of 3.1% in November. While market participants are eagerly awaiting the central bank’s stance on possible interest rate increases, the Federal Reserve meeting to be held on December 13 increases concerns. Although the Fed is likely to maintain the status quo, uncertainty prevails and is affecting investor sentiment.
Profit booking by investors who have recently gained from the significant rise in the crypto market may be contributing to the recent decline. The absence of negative catalysts in the market has led to significant gains in Bitcoin, Ethereum and other major cryptocurrencies. Investors are now seeking clarity on the country’s economic health. It closely monitors U.S. Producer Price Index (PPI) data for potential market impact. cryptokoin.comAs we reported, the FED interest rate decision will be announced today evening.
What is the performance of cryptocurrencies?
The global crypto market is experiencing negative trends, with market cap falling 1.71% to $1.54 trillion and total market volume falling 11.94% to $70.76 billion. Bitcoin’s price fell to $41,030.94 (down 1.12%), while Ethereum fell to $2,173.15 (down 2.1%). Other major cryptocurrencies, including XRP and Solana, also recorded losses. As the crypto market faces a downturn, investors are speculating on factors that could shape its near future.
The Fed’s interest rate decision holds the key to market sentiment, with a dovish or hawkish stance potentially sparking a recovery or extending a sell-off. Bitcoin Spot ETF approval and speculation regarding the upcoming Bitcoin Halving event also add to the uncertainty in the market.
Famous analyst predicted a short rise for BTC
Meanwhile, renowned crypto analyst il Capo offers market insights, predicting a temporary bullish wave that could see Bitcoin rise to $43,000-44,000 and Ethereum to $2,300-2,400. However, il Capo warns of an upcoming bear market phase, predicting that Bitcoin will fall below $40,000 after reaching $44,000. Despite closing some short positions in BNB, il Capo maintains its remaining positions, emphasizing a cautious perspective.
