Bitcoin Falls To Reach $28,000 Amid Yield Losses, Why Is The Fed Coming?
After a strong start to the month of October and passing through $28,000, the price of Bitcoin (BTC) has entered a major retracement down 1.87% and is trading around $27,591 at press time. Recent price swings have become due to the loss of returns losses have hurt investments for riskier investors.
On Monday, Bitcoin hit the $28,500 mark, bolstered by renewed optimism of adopting the cryptocurrency more broadly after the launch of a U.S. exchange-traded fund (ETF) based on Ether futures. However, these products did not generate as much profit as their Bitcoin Records suggested in 2021. Commenting on the development, Cici Lu McCalman, self-developer of blockchain Venn Link Partners stated:
According to Cleveland Fed President Loretta Mester, there is a possibility of an increase in the Fed funds rate every year again this. He explained that the purchase decision will be made by the Fed in accordance with the Fed's dual mandate.
Is Q4 good for Bitcoin this time?
Historically, the fourth quarter was good for Bitcoin and the broader cryptocurrency market for a long period of time. Bitcoin has fallen in value by 67% this year, according to the ONS as from a significant decline in 2022. However, it is usually still quite far from the all-time high of $69,000 received during the pandemic.
The analysis found safety in Bitcoin's historical upside, with October historically being a strong month for the cryptocurrency. Over the past decade, Bitcoin averaged a 24% increase in October, according to data compiled by Bloomberg.
On Monday, Bitcoin gave a strong return over $28,000 raising expectations for a return to $31,000. However, today's decline below $27,900 suggests that the rise did not materialize.
