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The post What Next for the Bitcoin Price After Biggest Sell-Off in 9 Months? appeared first on Coinpedia Fintech News
Bitcoin (BTC) experienced its sharpest price decline in nine months on Sunday evening, falling over 7% in less than an hour.
Major altcoins like Ethereum (ETH) and Solana (SOL) were also hit hard, but some analysts think a rebound could be on the horizon for BTC if it holds key support levels.
This article will analyze what could be next for Bitcoin before highlighting which altcoins may be poised for growth in the weeks ahead as the market aims to regain its footing.
Leverage Wipes Out Bulls as BTC Futures Market Remains Overheated
Bitcoin had been steadily climbing for weeks, even topping $44,700 last Friday following a period of sideways trading.
However, the tide suddenly turned on Sunday when Bitcoin plunged over 7% in less than an hour, sparking a wave of leveraged long position liquidations.
Data from CoinGlass reveals that Bitcoin experienced an abrupt $146 million in long position liquidations in under a day, surprising traders with high leverage.
This intense market volatility was primarily driven by excessive speculation, which tends to occur during periods of prolonged positivity.
At the time of writing, open interest for BTC exchange futures sits at over $17.7 billion – $7 billion higher than at the start of September.
This high level of open interest means substantial capital is still tied up in futures contracts, reflecting the high degree of trader interest in BTC.
Upcoming Fed Rate Cuts & Bitcoin Halving Could Influence BTC’s Price
As Bitcoin aims to regain its footing after Sunday’s sell-off, the crypto market is closely monitoring the Fed’s final interest rate decision of 2023 this week.
While the Fed is still focused on lowering inflation through rate hikes, major investment banks like Goldman Sachs have already forecasted that rate cuts could begin as early as Q3 2024.
Goldman Sachs predicts two rate cuts by the end of 2024 that will bring rates down to 4.875%, citing early signs of cooling inflation.
Additionally, with unemployment at near historic lows, traders believe ongoing labour market strength won’t prevent the Fed from implementing cuts next year.
When interest rates eventually do fall, the crypto market stands to benefit massively.
Cheaper borrowing costs typically correlate with heightened risk appetite across financial markets.
Moreover, with Bitcoin’s next halving event scheduled for April 2024, there could be prime conditions for the coin to experience its next bull run.
So, while Bitcoin may have pulled back sharply, the long-term outlook remains widely optimistic.
While Bitcoin begins to regain its footing after Sunday’s volatility, several emerging altcoins look poised for a breakout.
One of the most promising is Bitcoin ETF Token (BTCETF), which aims to provide exposure to the narrative surrounding spot BTC ETF approval in the US.
Deflationary Bitcoin ETF Token Built to Capitalize on Spot BTC ETF Mania
The rapidly-growing Bitcoin ETF Token is an Ethereum-based project structured to capitalize on the market impacts of a spot BTC ETF being approved.
BTCETF’s flagship feature is its deflationary tokenomics, with 25% of the supply set to be burned through five milestone events – improving scarcity and value as hype intensifies.
Not only that, but BTCETF will incorporate a 5% transaction tax once token trading goes live, further enhancing the deflationary effects.
The project even has a built-in staking platform for BTCETF tokens, with holders currently obtaining yields of 76% per year.
Bitcoin ETF Token has already raised over $3.6 million since its presale kicked off at the start of November, and investors worldwide are clamouring to get involved due to the discounted entry price.
Currently, BTCETF tokens are on offer for just $0.0066 – although this price is scheduled to rise incrementally in the coming weeks.
Many analysts have backed BTCETF based on its timed token burns, believing that the deflationary effects could kick in right as hype peaks around Bitcoin’s potential.
YouTuber Matthew Perry, who has over 200,000 subscribers, even speculated that BTCETF’s upcoming exchange listings could be a catalyst for a significant price spike.
With the BTCETF presale passing key funding milestones and ETF approval discussions now in their final stages, the stars seem aligned for Bitcoin ETF Token to benefit in the weeks and months ahead.
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