Bitcoin Drops Over 3% as Profit-Taking Follows FOMC Rally
Bitcoin (BTC) and major tokens experienced a decline of over 3%, following profit-taking after Thursday's rally. Key points include:
- Overall crypto market capitalization dropped by 3.2% in the past 24 hours.
- BTC fell from $86,000 to under $84,000.
- Ether (ETH) dipped below $2,000.
- Solana's SOL declined by 5%.
- XRP declined despite a Wednesday spike; it is up 4.8% weekly.
- BNB Chain's BNB gained over 8% weekly.
- Tron’s TRX and TON were the only major tokens gaining, both rising by 2%.
- TRX launched on Solana to expand its user base.
- TON attracted retail demand with over $400 million held by venture capital firms.
The Federal Open Market Committee (FOMC) meeting provided temporary upward momentum for BTC, which briefly surpassed $85,000 without any rate cuts announced. The Fed plans to reduce its quantitative tightening program starting in April, interpreted as an indirect rate cut.
Market analysis indicated:
- Probability of BTC reaching above $100K by June 30 increased from 20% to nearly 30%.
- Probability of ETH remaining above $2000 now viewed as a coin flip.
- 60% of ETH options traded were calls, indicating bullish sentiment.
- 34% of BTC trading volume involved bought options, reflecting demand for downside protection.
Analyst Alex Kuptsikevich noted:
- Critical support level for BTC is at $80,000.
- The crypto market remains below its 200-day moving average, currently around $2.9 trillion.
- A strong rally above this level could trigger buying but risks bear traps.
- Maintaining momentum above key levels is vital for renewed interest in various coins.