Summary
- Bitcoin’s value declined today following remarks from Fed Chair Jerome Powell.
- Sentiment regarding Bitcoin on prediction platform Myriad also dropped as bearish sentiment gained traction.
- Short-term technical indicators suggest a lack of momentum, although the overall bullish trend remains.
Bitcoin is experiencing a downturn today, with overall sentiment on prediction markets similarly declining.
Today, Bitcoin dropped to $110,000, a decrease of 3% after Powell stated that a rate cut in December was “not guaranteed.” This comment followed the Fed’s announcement of a 0.25% rate cut on Wednesday, bringing the federal funds target range to 3.75%-4.00%.
Instead of rallying on this dovish move, Bitcoin, Ethereum, and other crypto assets fell sharply due to Powell’s hawkish tone.
Furthermore, Bitcoin sentiment on the Myriad prediction market decreased significantly, dropping nearly 20%. The odds for Bitcoin rising to $120K or falling to $100K shifted from 75% to 58%, indicating that traders are less optimistic about BTC’s short-term future.
Despite the Fed’s widely anticipated rate cut, which typically shouldn’t impact prices in the short term, the sell-off was likely triggered by the usual “sell the news” reaction, Powell’s unexpected remarks, or a combination of both.
Currently, as the Fed’s decisions are past, focus shifts to whether Bitcoin can maintain critical support levels or if it will test the $100K mark.
