Reserve

Jerome Powell

<p><strong>As usual, the crypto market is facing a bearish scenario. This is not insignificant. It is in fact due to the accumulation of several factors that particularly influence crypto investors’ confidence. Here’s the situation.</strong></p>
<h2 id="h-crypto-wavers-as-the-fed-has-no-plans-to-cut-rates">Crypto wavers as the Fed has no plans to cut rates!</h2>
<p>The crypto market is experiencing a significant pullback today. It is influenced by a confluence of factors that have shaken investor confidence and created uncertainty about the direction of the sector in the short and medium term.</p>
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<p><a href="https://coingape.com/blog/why-is-crypto-market-falling-today/" target="_blank" rel="noopener noreferrer nofollow">At the forefront of these factors</a> is the unexpected announcement by the Federal Reserve (Fed) Jerome Powell regarding rates. Indeed, the Fed recently dismissed the idea of a cut, which crypto investors had been anticipating.</p>
<p>This stance by the Fed, focused on maintaining rates, has caused shockwaves in the financial markets. This triggered a drop in the price of bitcoin (BTC), the most popular crypto on the market. BTC fell by 0.76% over the last 24 hours to settle around $42,235.</p>
<h2 id="h-other-factors-exacerbating-the-situation">Other factors exacerbating the situation!</h2>
<p>The increased selling activity among bitcoin (BTC) miners during the recent price surge adds to the downward pressure on the crypto market. On-chain data analysis reveals that miners are frequently withdrawing their holdings from exchanges.</p>
<p>This trend has a significant meaning. It indicates a desire of these crypto players to secure their profits. A choice related to concerns about the limited price valuation in the short term.</p>
<p>Currently, the risk of a decline in confidence among bitcoin (BTC) miners seems low. However, continuous selling pressure could lead to an excess supply of BTC. This, in the medium term, would exert downward pressure on the price of the crypto.</p>
<p>Moreover, the prospects for the crypto market seem to be gloomy. Persistent inflationary pressures, amplified by the fear of an economic slowdown, raise questions. Specifically, regarding the viability of speculative assets like <a href="https://www.cointribune.com/en/bitcoin-btc-en-route-to-a-new-high-crypto-analysis-of-january-30-2023/" target="_blank" rel="noopener noreferrer nofollow">bitcoin (BTC)</a> as a hedge against traditional market risks. In this context, analysts warn against an immediate market reversal and advise investors to approach BTC’s periodic recoveries with caution.</p>

Crypto: The reasons behind the market decline

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