BTC Price Slips 3% in 24 Hours as $161 Million is Liquidated

Bitcoin (BTC) faces a sharp 3% drop within 24 hours, leading to $161 million in liquidations, as investors grow increasingly cautious amid market uncertainty.

Bitcoin’s 3% Decline Sparks Concerns

Over the past day, Bitcoin has seen a nearly 3% drop, bringing its market cap to around $2.11 trillion as of September 2. The decline follows Bitcoin's struggle to maintain its position above the crucial support zone of $58,000 to $60,000. As a result, BTC entered this week on a bearish note, with its price hovering around $58,45.

On-chain data reveals that this bearish trend has driven many investors to retreat from the crypto market, opting to safeguard their capital in stablecoins. Bitcoin’s fear and greed index has plunged to 26%, indicating a high fear among investors regarding further price drops. Moreover, the Exchange Volume Momentum indicator indicates a continued decline in trading activity, reflecting waning interest in Bitcoin.

The current downturn in Bitcoin could be part of the so-called “September curse,” a pattern observed since 2013 where Bitcoin typically records losses during September. This historical trend has heightened investor anxiety, reinforcing the bearish sentiment currently prevailing in the market.

Could FED Interventions Influence BTC’s Future?

Market watchers now point to the U.S. Federal Reserve (FED) as a potential savior for Bitcoin. A reduction in interest rates, anticipated this September, could bolster Bitcoin’s price by increasing liquidity in financial markets. Such a move might drive investors towards riskier assets like Bitcoin. However, the impact of the FED’s decision remains uncertain and heavily dependent on the broader market reaction.

As Bitcoin’s price continues to fluctuate, the overall crypto market is experiencing a surge in volatility. Many investors are turning to stablecoins as a safer alternative amidst the uncertainty. While the FED’s upcoming decision and the historical trends of September could play a crucial role in shaping Bitcoin’s trajectory, the market remains on edge.

Conclusion

At the time of writing, Bitcoin has shown a slight recovery, with a 0.37% increase, trading at approximately $57,523. The next few days will be critical in determining whether Bitcoin can regain its footing or if the bearish trend will continue to dominate.