Bitcoin (BTC) and the cryptocurrency market faced headwinds on Friday, falling below $35,000 just a day after testing resistance at $35,000. Bearish expectations spread across the board, with altcoins such as Binance Coin, Solana, and Tron down 1.5%, 2.4% and 1.7%, respectively.
Traders were excited by Bitcoin’s performance after Wednesday’s Federal Open Market Committee (FOMC) meeting. The Federal Reserve left interest rates unchanged but stressed the need to raise them again before the end of the year and tighten monetary policy over the coming months to support the battle to reduce inflation in the world’s largest economy.
Note that the crypto market’s decline also comes after the long-awaited crypto market rally amid immediate speculation in Bitcoin ETFs. And the US Federal Reserve’s successive interest rate “pause” and Chairman Jerome Powell’s cautious speech. And renewed buying by institutional investors.
The Fear and Greed Index on the cryptocurrency market has fallen from 72 to 65 over the past 48 hours. However, overall sentiment remains upbeat.
The cryptocurrency market is down after weeks of recovery. Traders decided to take profits following the expiration of exchanges on Friday. According to Deribit data, 42,000 BTC options are set to expire. With a notional value of $1.46 billion, with a call ratio of 0.58. The maximum liquidation point is $30,000. In addition, 220,000 ETH options with a notional value of $390 million are due to expire. The call ratio is 0.55 and the maximum liquidation point is $1,700.
Coinglass data indicates a massive liquidation of over $150 million in the last two days. More than 52 thousand merchants have been liquidated in the last 24 hours. With the largest liquidation order on XBTUSD from BitMEX worth $2 million. Due to the massive sell-off, the broader cryptocurrency market turned red yesterday.
Meanwhile, investment products in digital assets recorded inflows of $326 million last week. This was the largest one-week inflow since July 2022, alongside institutional purchases of Bitcoin amidst the hype of Bitcoin ETFs. Solana recorded its biggest week of inflows at $24 million since March 2022.
Paul Brodie, global head of blockchain at EY, said. Family offices have shown interest in investing in crypto-currencies. Institutional funds and other major institutions await SEC approval for a Bitcoin ETF.
Tips for reserving future profits and concerning two important developments on the blockchain after the recent rise in Bitcoin prices. Julio Monero, head of Cryptoquant research, recently stated that the rally may be coming to an end. Profit-taking was expected after a massive “upside” rally.
In addition, popular analyst Ali Martinez shared in an article on X that the TD Sequential indicator is providing a sell signal for Cardano (ADA).
. Shiba Inu (SHIB), Dogecoin (DOGE) and Injective (INJ). Prices for Cardano (ADA), Shiba Inu (SHIB), Dogecoin (DOGE), and Injective (INJ) rose last month as the crypto-currency market rallied.
However, market sentiment remains positive that the uptrend will continue after the rejection. Matrixport predicts that the Bitcoin price will reach $45,000 in 2023 and $125,000 by the end of 2024. What’s more, the Bitcoin price has officially formed a “golden cross” and macroeconomic factors are diminishing. Arthur Hayes, co-founder of BitMEX, recommends buying Bitcoin.
