Sep 26 2024: Bitcoin’s price declined on Thursday, falling below key levels as the cryptocurrency market came under pressure from a rebounding U.S. dollar, with traders awaiting further cues from the Federal Reserve in the coming days.
Broader market sentiment weakened, with Wall Street pulling back from record highs, although Asian markets remained more optimistic following stimulus efforts in China.
By 01:07 ET (05:07 GMT), Bitcoin had dropped 1.2% to $63,440.2.
Bitcoin Struggles Below $65k Resistance
Bitcoin, the world’s largest cryptocurrency, has retreated from levels that traders had anticipated could trigger strong short-term gains. According to Coindesk, the $65,000 mark has emerged as a major resistance level, with Bitcoin failing to sustain prices above this point since early August.
The token has been unable to make significant headway since its record high in March, remaining in a range between $50,000 and $60,000 for much of the year.
Market jitters were further exacerbated by reports of a long-dormant Bitcoin wallet, inactive for 13 years and holding approximately $3 million in assets, which moved its tokens to an exchange.
The upcoming expiration of Bitcoin and Ether contracts, valued in the billions, on Friday is expected to inject additional volatility into the crypto market.
Investors are also closely watching for a potential approval of options linked to BlackRock’s iShares Bitcoin Trust (NASDAQ: IBIT) by the Securities and Exchange Commission, which could attract institutional investment.
Dollar Rebound Pressures Crypto; Powell Speech Awaited
A rebound in the U.S. dollar put pressure on the cryptocurrency market, as the greenback recovered from a one-year low on Wednesday. The dollar’s strength came amid uncertainty regarding the Federal Reserve’s future rate cuts, following a significant 50 basis point cut last week.
Several Fed officials expressed support for the recent cut but remained uncertain about the pace of further reductions. Fed Chair Jerome Powell is expected to provide more insights in a speech later on Thursday.
Key U.S. economic data, including a revised Q2 GDP report and weekly jobless claims, are set to be released later in the day, with the Fed’s preferred inflation gauge, the PCE price index, scheduled for Friday.
Altcoins Drift Lower Alongside Bitcoin
The broader cryptocurrency market remained subdued, with major altcoins following Bitcoin’s downward trend. Ether, the second-largest crypto, fell by 0.8% to $2,604.67, while XRP, SOL, ADA, and MATIC traded within a flat-to-low range.
Among meme coins, DOGE lost 0.3%.
