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The current trade price of Bitcoin (BTC), the top crypto asset by market cap, is $54,811 & this price is 9.5% down over the last 24 hours. The notable dump in the price took place in the last couple of hours.
It is worth it to note that the trade price of Bitcoin crashed more than 20% in the last 7 days, from $69k to $52.5k.
Top media reports pointed out multiple factors that are responsible for this big crash in the all-volatile money market.
The market crashed due to a combination of factors stemming from a poor employment report and changing expectations about Federal Reserve interest rate policies.
The latest employment report was weaker than expected, indicating economic trouble. This made investors worry about the overall health of the economy.
The poor employment data forced the Federal Reserve to consider a “hard landing” for the economy, which means taking more aggressive actions to manage inflation and stabilise the economy.
Both Citi and JPMorgan now expect significant interest rate cuts by the Fed—50 basis points (bps) in September, 50 bps in November, and 25 bps in December.
According to CME, there is a 78% probability of a 25 bps cut in September and a 22% probability of a 50 bps cut, reflecting market uncertainty about the Fed’s next moves.
Citi and JPM now expect the Fed to cut rates by 50 bps in Sept, 50 bps in Nov, 25 in Dec.
(Will update this table later today as many of these are now likely getting redrafted.) https://t.co/nuPs9Lp1Kp
These anticipated rate cuts reflect serious concerns about the economy’s ability to grow, leading to reduced investor confidence and causing a market crash.
Yesterday, Warren Buffett reportedly sold $277 billion worth of stocks, reflecting market sentiments. Buffett’s large stock sale acted as a catalyst for other investors to sell stocks short. However, Bitcoin enthusiasts argued that Buffett is responsible for these significant corrections in the market.
Lol he’s not getting ready for it he’s causing it
— The ₿itcoin Therapist (@TheBTCTherapist) August 4, 2024A popular crypto analyst suggested people not to worry about the latest correction, and he believes that the price will soon rebound.
#Bitcoin Rebound?
The Trendline and Kijun 🔵 are significant lines to monitor in the immediate short term. #BTC has reacted well around them since the beginning of the year.
I think a rebound at these levels is likely. pic.twitter.com/j4evTBimN6
Read also: Bitcoin Crashes Below $60,000 Again – What Could be the Reason? Predictions
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