🚨 Danger Alert!
#bitcoin cae to the zone of $90,000 while #Fed prepares its key decision 📉
#BTC has lost the initial gains of the week and has sharply retraced towards the $90,000 level, positioning itself in a "danger zone" just before the Federal Reserve (Fed) announcement tomorrow.
The Catalyst for the Drop: The market is preparing for the Fed's imminent decision on interest rates, which will be announced on Wednesday.
Market Expectation: The vast majority of traders (overwhelmingly forecasted) expect a 25 basis point rate cut.
The Theoretical Effect: A rate cut is traditionally seen as a bullish factor for risk assets like Bitcoin and other cryptocurrencies, as it reduces the value of the US dollar (USD).
The News Risk: The main risk lies in the fact that this rate cut expectation may already be fully priced into the current Bitcoin price. If this is the case, the confirmation of the cut (or even the news itself) could trigger a sell-off in the market.
End of Year Implication: If the cut is already priced in, it could mean that there are no significant new bullish catalysts left for the rest of the year, which would put downward pressure on the prices of risk assets.
