Why is BTC falling?đ?
Yesterday (Sept 15), Bitcoin briefly broke below $75,000, with the low roughly around $74,900â$75,560, before quickly rebounding back above $76,000. Itâs currently mostly trading in a range of about $75,500â$76,000.
This drop isnât due to a single factorâseveral things are stacking up:
1. The Fed is expected to raise rates tonight (the most direct macro pressure)â¨Today (Sept 16), the FOMC is meeting, and the market is almost certain to hike by 25 basis points. As rate-hike expectations heat up, risk assets get sold off. Bitcoin, as a high-volatility asset, is especially sensitive to interest rates.
2. U.S. Treasury yields suddenly broke above 5%â¨The yield on the 10-year U.S. Treasury surged to 5.04%, the first time since November 2023 and approaching levels last seen around 2007. Bond yields across major global economies also hit multi-year highs. Money flows into Treasuries, so ânon-yielding assetsâ like crypto get dumped.
3. The CLARITY Act failed in the Senate voteâ¨This has been the biggest near-term regulatory catalyst. A procedural Senate vote (which requires 60 votes to move to debate) failed 49â50. All Democrats voted against it, and four Republicans also voted no. The market had been counting on this bill to provide clear rules for the crypto market, but that hope fell throughâsentiment soured immediately.
4. Leverage liquidations amplified the dropâ¨After breaking the $77,000 support level, roughly $98 million worth of long positions were forcibly liquidated, triggering a chain sell-off. It surged from around $79,500, then rolled over and sold off all the way down.
In short: rate-hike expectations + a surge in bond yields + regulatory hopes dashed + leveraged liquidationsâall happening on the same day.
Now the market is waiting for tonightâs Fed decision and Powellâs remarks. If the tone after the hike is dovish (suggesting no further aggressive hikes), Bitcoin could stabilize around 75k and even rebound. If the tone is hawkish, 75k may not hold, and weâll look to the 72,000â73,000 area.
Short-term volatility will likely be fairly highâwatch your position size.
$BTC $ETH
Yesterday (Sept 15), Bitcoin briefly broke below $75,000, with the low roughly around $74,900â$75,560, before quickly rebounding back above $76,000. Itâs currently mostly trading in a range of about $75,500â$76,000.
This drop isnât due to a single factorâseveral things are stacking up:
1. The Fed is expected to raise rates tonight (the most direct macro pressure)â¨Today (Sept 16), the FOMC is meeting, and the market is almost certain to hike by 25 basis points. As rate-hike expectations heat up, risk assets get sold off. Bitcoin, as a high-volatility asset, is especially sensitive to interest rates.
2. U.S. Treasury yields suddenly broke above 5%â¨The yield on the 10-year U.S. Treasury surged to 5.04%, the first time since November 2023 and approaching levels last seen around 2007. Bond yields across major global economies also hit multi-year highs. Money flows into Treasuries, so ânon-yielding assetsâ like crypto get dumped.
3. The CLARITY Act failed in the Senate voteâ¨This has been the biggest near-term regulatory catalyst. A procedural Senate vote (which requires 60 votes to move to debate) failed 49â50. All Democrats voted against it, and four Republicans also voted no. The market had been counting on this bill to provide clear rules for the crypto market, but that hope fell throughâsentiment soured immediately.
4. Leverage liquidations amplified the dropâ¨After breaking the $77,000 support level, roughly $98 million worth of long positions were forcibly liquidated, triggering a chain sell-off. It surged from around $79,500, then rolled over and sold off all the way down.
In short: rate-hike expectations + a surge in bond yields + regulatory hopes dashed + leveraged liquidationsâall happening on the same day.
Now the market is waiting for tonightâs Fed decision and Powellâs remarks. If the tone after the hike is dovish (suggesting no further aggressive hikes), Bitcoin could stabilize around 75k and even rebound. If the tone is hawkish, 75k may not hold, and weâll look to the 72,000â73,000 area.
Short-term volatility will likely be fairly highâwatch your position size.
$BTC $ETH