The cryptocurrency market is undergoing another dip, with Bitcoin (BTC) falling below $57,000. The global crypto market cap, on the other hand, has fallen by 4.6% in the last 24 hours to $2.08 trillion. September has historically been a bearish month for the crypto sector. The trend seems to be intact this year as well.
Also Read: Can Dogecoin (DOGE) Rise To $1 in 2024?
Current Market Trends and Predictions
Source: CoinGecko
BTC’s Recent Performance
BTC is currently down 3.8% in the daily charts, 4.3% in the weekly charts, and 4.5% in the 14-day charts. However, the largest crypto by market cap has maintained gains in the monthly chart, rallying 7.4% in the last 30 days.
Why Is The Crypto Market Dipping?
The latest market dip is surprising. The Federal Reserve recently announced an interest rate cut in September. Rate cuts usually lead to riskier investments from market participants. September is also usually a bearish month for Bitcoin and the crypto market and may have led to investors being cautious.
Also Read: Historical Data: Global Market Takes A Hit In Sept, Surges In October
Investor Sentiment And Macroeconomic Conditions
It appears investors are not confident about investing in risky assets. Macroeconomic conditions may have influenced the current market behaviour. Market volatility is also rising, leading to a further drop in market sentiment.
BTC Predicted To Dip Further
According to cryptocurrency analyst Ali Martinez, the TD sequential indicator in BTC’s 2-month chart shows a sell signal. The analyst highlights that if the original cryptocurrency loses the $51,000 support level, it could fall to $40,600. Dipping to $40,600 would translate to a drop of about 28.4% from current levels.
According to a report by Bitfinex, an interest rate cut could bring forth an additional 15-20 percent drop in the crypto market, contrary to what many investors expect.
Also Read: VeChain (VET) Could Deliver 20% Returns in September
BitMEX founder Arthur Hayes also presents a bearish outlook for Bitcoin (BTC). Hayes anticipates BTC to fall to $50,000 in the short term.
