August 15 does not seem to end well for Bitcoin. The leading cryptocurrency has been plummeting for several hours. After struggling to maintain key levels, the price failed to close above $60,000. Now, as a result of the selling pressure over the last 2.5 hours, the price has fallen below $57,000.
Why Are Cryptocurrencies Falling?
Many analysts mentioned the possibility of a new test at $56,000 today. Bitcoin has now dropped to $56,842 after warnings when it was around $59,500. The leading cryptocurrency struggling to close above $57,000 is causing altcoins to hit new daily lows.
Major Factors
There are several reasons for the drop. One reason is the options expiring tomorrow, and another is the increased likelihood of a rate cut below 100bp in 2024 following recent data. Before this week’s data, the market was pricing in a 50bp cut for September and expecting more annually. Fed members’ statements that there is nothing alarming on the employment front, the World Health Organization’s declaration of a global emergency for the monkeypox virus, and the drop triggered by last week’s interest rate hike in Japan and recession fears should not be overlooked.
Safe Zone for Bitcoin
The safe zone for Bitcoin is closing above $63,000, and for now, it is moving away from that level.
The next few days will show whether Bitcoin manages to recover and overcome the current volatility.
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