The beast is back. The crypto market reminds us of its extreme volatility, massive losses and the palpable anxiety that accompanies it. Bitcoin tumbled below $63,000 this morning, a slap in the face for traders. Everyone is holding their breath before the crucial meeting of the American Federal Reserve (FED) scheduled for this afternoon.
Bitcoin, the crash of the day
Bitcoin saw red today. A scarlet red. A bleeding of almost 8% in 24 hours, its worst performance since the cataclysm caused by the collapse of FTX. The traders have sweaty hands and foreheads beaded with sweat. No less than 600 million dollars of positions were liquidated at once, a real massacre.
Ether, Solana, Avalanche… All the large caps in crypto collapsed in the process. The tide of Bitcoin has suddenly turned. Fear replaces greed on analysis markers market sentiments. A scent of crisis floats again in the air, reviving painful memories.
Eyes on Jerome Powell
All eyes are now on Jerome Powell, the chairman of the powerful Federal Reserve. His speech, scheduled for the end of the day, is eagerly awaited. And feared by certain players in the crypto market, and Bitcoin in particular.
The big fear? Let interest rates remain unchanged at their current high levels. Or worse, that they go up again, in a new monetary tightening aimed at trying to definitively stifle galloping inflation.
In this scenario, beware of cryptocurrencies. They would probably plunge even deeper into the downtrend, accelerating the disappointments. The specter of a major economic recession for good would then emerge. The hideous scenario no bitcoin trader actually wants to imagine.
The crypto market and that of Bitcoin once again remind us of its true nature. That of a wild and uncontrollable beast, with sudden moods and violent jolts. Today, investors are taking a terrible hit. Some will take weeks, even months, to lick their wounds and lick their wallets while recovering. It remains to be seen whether the pack of Bitcoin traders will manage to recover after the highly anticipated announcements from the FED. Or if it will once again have to tame the crypto beast, which has become fiery and threatening again after a period of deceptive calm.
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