Market sell-offs and economic uncertainty have led to further declines for Bitcoin, awaiting key signals from the Federal Reserve. Bitcoin recently broke below the $80,000 level both numerically and psychologically, indicating an increase in traders' caution. Bitcoin dropped to a low of about $76,500 before a slight rebound. Ethereum's performance has also not fared much better, with its value dropping over 11%, currently trading at around $1,850, marking the lowest level since October 2023. In the volatility of cryptocurrency prices, political commentary seems to play a crucial role. Trump's remarks about a market crash have angered investors, as he indifferently acknowledged that potential economic recession has shaken confidence. Significant pullbacks are normal in a bull market, and Bitcoin is expected to find a bottom around $70,000. Traders hoping to profit should consider a buy-the-dip strategy, and those more averse to risk are advised to wait for signals from the central bank before committing funds. Looking ahead, investors will closely monitor the FOMC meeting scheduled for next week. It is likely that Federal Reserve Chairman Jerome Powell may maintain current interest rates, but the market will look for signs of future rate cuts. In summary, the market is currently under immense pressure from political developments and economic concerns.
