Fed's Policy Shift Sparks Bitcoin Price Crash Fears
1min read The Federal Reserve's recent confirmation of a significant shift in its monetary policy has sparked a wave of uncertainty in the cryptocurrency market, with Bitcoin prices experiencing a notable decline. This move by the Fed, coupled with the potential impact of a Trump administration on the crypto landscape, has raised concerns about a possible Bitcoin price crash.
The Fed's decision to tighten monetary policy has led to a sell-off in risk assets, including cryptocurrencies. This shift in policy has been driven by the central bank's desire to combat inflation and maintain economic stability. As a result, investors have been pulling back from riskier assets, such as Bitcoin, in favor of safer investments like government bonds.
Meanwhile, the potential impact of a Trump administration on the crypto market has also been a topic of discussion. During his campaign, Trump expressed support for cryptocurrencies and blockchain technology. However, his eventual victory as US President did not lead to the expected crypto-friendly policies. Instead, the market experienced a surge in Bitcoin prices followed by a correction, as market makers manipulated the market to take advantage of new entrants.
Analysts have been speculating about the potential impact of these developments on the crypto market. Some have suggested that Bitcoin may need to return to $76,000 to resume its bullish momentum. This prediction is based on technical factors such as the double top formation and the short-term Wyckoff Distribution Scheme, which indicate that Bitcoin is due for a major decline. However, others have argued that the Bitcoin market is still in a consolidation phase and that a pullback to $76,000 would allow the market to absorb excess demand and provide institutional investors with an opportunity to accumulate BTC.
At the time of writing, Bitcoin is trading at $99,659 after a 2.74% decline in the past day. The asset's daily trading volume has also plummeted by 31.29%, suggesting a significant decline in traders' interest. To make any significant uptrend, Bitcoin faces a major resistance at $106,000, moving past which may push the asset to new price regions. With a market cap of $1.99 trillion, BTC remains the most valuable cryptocurrency, boasting a market dominance of 58.6%.
The recent surge in crypto market liquidations has also been a cause for concern. In 
