Bitcoin Falls Deeper Minutes Ahead Of FOMC – Why Is The Crypto Market Down Today?
The price of Bitcoin fell sharply, near $96,000, putting the market below the support level.
While BTC price suffered a 5.46% fall, Ethereum price dropped 8.97%, trading at $3,348 while XRP & SOL lost 4.25% & 9.12% respectively. Dogecoin and Cardano experienced big pullbacks of over 10% and 9%, respectively, while other altcoins marked similar returns. With an increase of more than 33.12%, the global trading volume reached more than 170 billion dollars, while the market capitalization decreased to 3.36 trillion dollars, with a compression of 6.38%.
What went wrong? Why are crypto markets falling so much?
Two notable events are scheduled shortly: ADP Nonfarm Employment and the FOMC minutes. ADP is a sneak peek at the health of the labor market, setting the tone ahead of the big reveal as the FOMC minutes dive into the Fed's mind. It sheds light on the rates that affect the price of BTC.
What's Next for the BTC Price and the Market as a Whole? Taking into account the liquidity, Bitcoin alone recorded around $100 million and again reached an all-time high of around $558 million. However, the pressure has not subsided as the signs continue to be equal for both sides.
The above liquidity heat map by Coinglass suggests that bears are setting up shorts at an impressive rate. If the price of Bitcoin returns to $98,600, more than $35 million will be released, and if it brings levels above $103,300, then you will get the same lot of more than $66 million. In short, the traders still seem pessimistic or unsure about the sustainability of the startup token. However, a volatile rollercoaster is always good for sustaining a healthy trend, and therefore, a potential drop is expected to attract significant volume to the platform.
The beginning of 2025 has been recorded as one of the most aggressive in recent history, with Bitcoin, Ethereum and other altcoins able to hold above the binding range. Regardless of the corrections, some altcoins, such as XRP, XLM, BNB, etc. and a few are showing strength, suggesting that a recovery may be near. Meanwhile, BTC's supremacy continues to remain in thick upswings, indicating that an altseason may be on the horizon.
