Is Bitcoin Headed for a Drop? The Ripple Effect of Fed’s Moves

Bitcoin and cryptocurrency markets are shaky. Recent Fed announcements have caused worry. Bitcoin (BTC) might be heading for a downturn, and experts are watching closely.

Also Read: How to Buy USDT with Google Pay?

How Fed Announcements Impact Bitcoin and Cryptocurrency Markets

Source: Investopedia

Recent Market Trends

Sellers have become active

“Short-term holders transferred 33,155 bitcoins as shown by the 1w-1m spent output age bands. This could present immediate selling pressure.” – By @XBTManager

— CryptoQuant.com (@cryptoquant_com) August 26, 2024

Bitcoin is leading a possible downward trend in cryptocurrencies. The market was hopeful after recent Fed announcements about policy changes, but this hope is fading.

BTC’s price has fallen below an important marker, suggesting less positive momentum.

Short-Term Selling Pressure

Data shows more short-term owners are selling. CryptoQuant says:

“Short-term holders transferred 33,155 bitcoins as shown by the 1w-1m spent output age bands. This could present immediate selling pressure.” – By @XBTManager

Support Levels and Price Targets

Here are key support levels to monitor based on the buying patterns of #Bitcoin investors:

– New Whales: $63,450
– Binance Users: $55,540
– $BTC Miners: $44,400
– Long-Term Holders: $25,000 pic.twitter.com/XhbhyfPI8N

— Ali (@ali_charts) August 26, 2024

Despite the ups and downs, some experts see stable price points. Ali Martinez thinks Bitcoin might hold steady around $55k. Many Binance users bet on this price.

He said:

“Here are key support levels to monitor based on the buying patterns of #Bitcoin investors: – New Whales: $63,450 – Binance Users: $55,540 – $BTC Miners: $44,400 – Long-Term Holders: $25,000”

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Bitcoin Dominance and Altcoin Market

Looser monetary policy is coming. Powell made that clear.

But #BTC dominance still likely goes higher in the short-term.

Last cycle, dominance did not top until after rate cuts and QE began.

60% should still be on the menu. pic.twitter.com/ovc1NaIDtG

— Benjamin Cowen (@intocryptoverse) August 26, 2024

Other cryptocurrencies might lose ground to Bitcoin soon. Benjamin Cowen thinks BTC’s market share could reach 60%.

He said:

”Looser monetary policy is coming. Powell made that clear. But #BTC dominance still likely goes higher in the short-term. Last cycle, dominance did not top until after rate cuts and QE began. 60% should still be on the menu.”

He expects this to change in 2025. In the past, BTC’s share peaked when the Fed cut rates and printed money.

Future Outlook

The cryptocurrency market’s future is uncertain. Prices might drop in the short term, but long-term investors will keep buying BTC. Future Fed announcements and economic trends will likely affect Bitcoin’s path.

Also Read: BRICS: Russia To Officially Use Cryptocurrency For Trade Settlements

BTC’s price is affected by many factors. The link between Fed announcements and crypto markets remains essential for prices and market mood.