Plunge

Bitcoin

<p>Bitcoin is experiencing a significant decline, reviving investor concerns. After hovering around $66,000 last week, its price fell to $62,501 on Tuesday, a drop of 5.3%.</p>
<h2 id="h-les-catalyseurs-d-un-recul-inattendu">The Catalysts of an Unexpected Decline</h2>
<p>This sudden drop originates from several key factors. Firstly, statements by <a href="https://www.cointribune.com/en/jerome-powell-boosts-bitcoin-to-543-million-in-inflows/" target="_blank" rel="noopener noreferrer nofollow">Jerome Powell</a>, chairman of the Federal Reserve, cooled market enthusiasm.</p>
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<p>During a speech in Nashville on September 30, Powell tempered expectations regarding interest rate cuts, predicting only two reductions of 25 basis points each by the end of the year.</p>
<p>This perspective led to an adjustment in market expectations. According to the CME FedWatch Tool, the probabilities of a 50 basis point rate cut in November dropped from 53% last Friday to 38.2% after Powell’s <a href="https://www.reuters.com/markets/rates-bonds/feds-powell-says-rates-will-over-time-reach-neutral-level-not-preset-course-2024-09-30/" target="_blank" rel="noopener noreferrer nofollow">remarks</a>.</p>
<p>Moreover, the <a href="https://www.cointribune.com/en/la-fed-face-a-lembrasement-du-moyen-orient-2/" target="_blank" rel="noopener noreferrer nofollow">escalation of tensions in the Middle East</a> has increased investors’ risk aversion, weighing on volatile assets like Bitcoin.</p>
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<h2 id="h-un-marche-du-bitcoin-qui-demontre-sa-resilience">A Bitcoin Market Demonstrating Its Resilience</h2>
<p>Despite this decline, several indicators suggest underlying resilience in the <a href="https://www.cointribune.com/en/bitcoin-is-rising-but-without-small-investors-why/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin market</a>. Data from CryptoQuant reveals that the $63,000 level corresponds to the realized price by short-term holders, serving as support since mid-September.</p>
<p>Additionally, capital inflow into <a href="https://www.cointribune.com/en/55-billion-dollars-invested-in-bitcoin-etf-in-2024/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin ETFs</a> remains significant, albeit decreasing. According to Farside Investors, Bitcoin ETFs recorded net inflows of $494.4 million last Friday, including $203.1 million for Ark Invest’s ARKB ETF and $123.6 million for Fidelity’s FBTC.</p>
<p>Although Bitcoin is experiencing a period of volatility, many analysts maintain a long-term optimistic perspective. On-chain data indicates that investors continue to accumulate BTC by transferring them from exchange platforms to private wallets, a behavior generally interpreted as a sign of lasting confidence.</p>
<p>IntoTheBlock highlights another potentially bullish factor: the increasing demand for Bitcoin in decentralized finance. Currently, 1% of the total Bitcoin supply is locked in DeFi protocols, thus reducing available liquidity in spot markets and potentially exerting upward pressure on prices.</p>
<p>In this uncertain economic context, investors need to remain vigilant. <a href="https://www.cointribune.com/en/bitcoin-in-danger-this-major-threat-could-destroy-its-rise/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin may experience further fluctuations</a> in the short term before potentially resuming an upward trajectory in the long term.</p>
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New Plunge Of Bitcoin: Why Is The Market Struggling To Take Off?

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