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Bitcoin’s price experienced a drop today that hasn’t been seen for a long time.
BTC broke through the psychological barrier of $80,000, which it hadn’t fallen below since April, and is currently trading at $78,750.
According to Binance data, the price dropped to a low of $78,500.
The entire cryptocurrency market is wondering about the reason for this sharp drop in Bitcoin and altcoins. As Bitcoinsistemi.com, we have listed the biggest factors affecting the decline for you.
As is known, US President Donald Trump recently announced that his chosen successor to Jerome Powell, whose term ends in May, is Kevin Warsh. Kevin Warsh is known in the market as a hawk who is not very keen on interest rate cuts.
Following Warsh’s announcement as the Fed Chair nominee, expectations of a Fed interest rate cut this year have fallen in the markets. This, in turn, caused an incredible drop in the prices of gold and silver on Friday, after a long period of significant rallies. The decreased expectation of interest rate cuts also triggered a sharp decline in Bitcoin and altcoins, which are considered risky assets. Some Wall Street companies are even considering the possibility of interest rate increases this year.
Some internal debates within the cryptocurrency market itself may have put downward pressure on prices. Yesterday and today, numerous influential cryptocurrency representatives believe the current pullbacks could stem from a massive liquidation of positions on Binance on October 10th. The scale of those liquidations is considered to be even larger than the FTX crash, impacting the fundamentals of the cryptocurrency market.
While BNB’s price had been less affected by previous declines, this time it was no exception, experiencing an 8% drop in 24 hours.
In addition, Donald Trump’s demand for Greenland from Denmark, his desire to regain control of the Panama Canal, Venezuela’s opening up to American oil companies, the remoteness of a potential peace in the Russia-Ukraine war, and rumors of US intervention in Iran are all fueling high geopolitical risks and putting pressure on Bitcoin and altcoin prices.
In addition, Donald Trump continues to threaten countries that oppose his demands with tariffs.
*This is not investment advice.