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Breaking News: Bitcoin Price Tumbles Toward $98,000: What’s Driving The Drop And What Lies Ahead
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Breaking News: Bitcoin Price Tumbles Toward $98,000: What’s Driving The Drop And What Lies Ahead

Bitcoin Climbs Above $28,500, Fed Decision Will Fuel The Rally?

Reynaldo Marquez
Reynaldo Marquez
Last Updated: June 11, 2024 2:34 pm
2 mins read
top crypto lowcaps 2025

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The Bitcoin price continues to record new yearly highs as the cryptocurrency goes on a bullish rampage. There is no resistance level capable of containing BTC bulls, while macroeconomic uncertainty and a banking crisis fuel the fire.

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As of this writing, Bitcoin trades above the critical level of $28,500 and is pushing upwards. Today’s U.S. Federal Reserve (Fed) Open Market Committee (FOMC) is bound to bring volatility. The ongoing crisis in the country has investors sitting on the edge, and this event could provide clarity for BTC and other assets.

Bitcoin BTC BTCUSDT Chart 1
BTC’s price trends to the upside on the daily chart. Source: BTCUSDT Tradingview

Bitcoin Investors’ Sentiment Shifted, But Caution Prevails

According to crypto market analyst firm Blofin, the price of Bitcoin is rising while traders await the FOMC decision around interest rates. As NewsBTC reported yesterday, any cute in interest rate hike could hurt the current BTC rally.

If the Fed cuts, the institution sends a message that could be interpreted as fear. If it rises rates, the market could translate this into confidence. Either result seems negative for the financial institution as the former might increase the crisis, while the latter could spike inflation.

In that sense, the Fed should operate under a “Business as usual” and raise rates by 25 basis points (bps). If so, the market might calm, and BTC could reclaim higher levels. In the meantime, the number one crypto by market cap is bound to dominate over other digital assets. Blofin wrote:

BTC is now trading at above $28.5k amid the uncertainty of the FOMC’s interest rates decision. Due to the improvement of sentiment in the risk assets, the performance of BTC is significantly better than ETH for the time being,  which is reflected in the ETH/BTC trading pair.

Bitcoin BTC BTCUSDT Chart 2
ETH/BTC trading is declining as uncertainty drives investors toward Bitcoin. Source: Blofin

Blofin notes a decrease in Implied Volatility for at-the-money (ATM) contracts in the crypto options sector. In other words, investors expect BTC’s rally to slow down sometime in the coming days.

In this sector, crypto investors show a neutral bullish bias, but Blofin noted, “risk aversion is also rising.” Today’s FOMC decision could have a long-lasting impact on these investors’ perceptions.

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However, there is a high chance that the Fed will stay the course or come out dovish to mitigate fear in the market. As long as this attitude does not translate into a rate cut, BTC will likely trend upward for the short term.

4/6. From the perspective of skewness, considering that the Federal Reserve is likely to show a dovish attitude at the March FOMC meeting, most investors still maintain a neutral to bullish attitude. pic.twitter.com/SH7s5vIW9h

— Blofin Academy (@Blofin_Academy) March 22, 2023 

BTC/USDT chart from Trandingview

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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

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