3 Reasons Why Bitcoin Crashed to a 10-Day Low Today and What's Next

Bitcoin’s recent rally to $65,600 was short-lived, as the cryptocurrency dropped to a ten-day low of $63,000. This correction highlights the persistent bearish pressure in the market. Here are the three main reasons behind the decline and what analysts expect next.

FOMC Uncertainty The upcoming Federal Reserve FOMC meeting is a key macro event. While the central bank is expected to keep rates unchanged at 3.50%-3.75%, markets assign a one-in-three chance of a surprise rate hike due to persistent inflation. Investors are de-risking ahead of the meeting, as uncertainty about interest rates typically weighs on speculative assets like Bitcoin.

Broader Market Crash Bitcoin’s decline coincided with a sell-off in Asian equities. South Korea’s KOSPI dropped double digits, while Japan’s Nikkei 225 fell over 4%. In the US, major tech stocks like Nvidia and Micron posted losses of up to 5%. Gold also declined sharply, falling over $100 after peaking near $4,120.

ETF Outflows Spot Bitcoin ETFs continued their outflow streak, with net withdrawals of under $12 million on Monday. This follows two days of heavy outflows totaling $465 million. While the latest figure is modest, the persistent red streak adds to bearish sentiment.

What’s Next? Analyst Ali Martinez noted that Bitcoin’s 3-day Bollinger Bands have tightened, often preceding major price moves. Ted Pillows identified $62,000 as key support; a break below could push Bitcoin under $60,000. On the positive side, analyst CW observed that whales are rapidly recovering their selling volume, which could support a short-term bounce. The most critical factor remains the FOMC meeting, which is likely to trigger heightened short-term volatility regardless of the outcome.

Source: https://cryptopotato.com/3-reasons-why-bitcoin-crashed-to-a-10-day-low-today-and-whats-next/