bitcoin Although the price approached $24,000 with a slight rise over the weekend, it lost value during European trading hours. The price dropped to around $23,000. According to the data, the liquidation amount in the last 24 hours is over $116 million.
According to Coinecko’s update, the total crypto market capitalization decreased by 2% to $1,087 trillion.
The drop in Bitcoin price triggered the drop in the entire crypto market, as expected. Ethereum is currently trading at $1,578, which means a 2% drop today.
Floki Inu was the most noticeable on the meme coin front. FLOKI is down 17% to $0.00002375.
Crazy Offer Accepted on Meme Coin: 4.2 Trillion Tokens to be Burned!
Why Is The Bitcoin Price Falling?
Bitcoin price fluctuations are due to several macroeconomic factors, including the Federal Reserve’s upcoming announcement on interest rates.
Many analysts predict that interest rates will rise by more than 25 percentage points. Evai.io CEO Mathew Dixon thinks this development will be positive for Bitcoin. The weakness in the dollar also strengthens the similar picture.
#FOMC interest rate decision +25bps will likely spark a relief rally in #btc #altcoins and risk assets so long as expectations are met that interest rate increases are slowing whilst economy is currently robust. However economy will slow dramatically in coming months imo #Evai pic.twitter.com/tQZnbNAXCb
— Matthew Dixon – CEO Evai (@mdtrade) January 29, 2023
Despite this, discussions about a possible correction in Bitcoin’s price continue.
Binance is grappling with the accusation of manipulating the market by pumping the price up using the BUSD market. As a result, it is possible that short-term investors and miners outnumber whale buyers, leading to a correction.
The closing prices in the last days of January will be very important. As a result, a close above $23,400 on the monthly candle will increase the bullish sentiment, according to analyst Rekt Capital.
At this moment, #BTC is forming an upside wick beyond the ~$23400 Monthly resistance (blue)
However the Monthly Close is still a couple of days away and things could change in the meantime
A $BTC Monthly Close above ~$23400 would be bullish#Crypto #Bitcoin https://t.co/9M84m6W7kk pic.twitter.com/8q3l55VwrH
— Rekt Capital (@rektcapital) January 30, 2023
Meanwhile, long-term Bitcoin features point to a possible multi-week consolidation towards next year’s halving event. Most analysts expect BTC to retest its peak price and enter price discovery territory after the 2024 halving.