Bitcoin, the world’s most valuable cryptocurrency, saw a sharp decline in price on Wednesday. It was down 6%, hitting the lowest mark since February.
After hovering around $60K on Tuesday, Bitcoin’s price slipped to $57,129.30 on Wednesday morning. This has been a result of a major sell-off by crypto investors, who are deciding to cash in before the Federal Open Market Committee (FOMC) makes a decision on interest rates during the upcoming meeting.
While further hikes are unlikely, there is also a strong belief that the committee won’t resort to interest rate cuts in 2024. If that turns out to be correct, the assets sensitive to interest rate movements, like crypto, would be less attractive to investors, hampering Bitcoin price.
According to analysts, Bitcoin is taking a downward turn as a result of investors opting to profit from low purchase prices in 2022 and 2023. After reaching historic highs during the pandemic, Bitcoin dropped all the way down to around $15K in late 2022 and traded between $20K and $30K in 2023.
The trend changed in early 2024 when Bitcoin skyrocketed to all-time highs and broke the $70K barrier at $73,803 in March. Since then, the cryptocurrency lost more than 20% of its value.
