Bitcoin Dips 4.6% Post-Fed Rate Cut: Analysts Advise Caution Amid Volatility
December 21, 2024Strong retail performance is being supported by a solid labor market and stable household finances, contributing to overall economic resilience.
Investors are closely monitoring various economic indicators, including European car registration figures and Spanish trade data, to assess the region's economic health.
Despite this downturn, the approval of new ETFs could pave the way for more diversified crypto investment products, enhancing market accessibility.
Market analysts remain cautious about potential volatility in the near future, as external economic pressures continue to loom.
The MVRV Ratio, which indicates unrealized profitability, currently hovers around 3, suggesting there is still potential for growth before reaching historically overheated levels.
Recent spikes in the adjusted Spent Output Profit Ratio (aSOPR) indicate profit-taking behavior among investors, which could lead to an exhaustion phase before buying resumes.
Despite the recent market correction, analysts describe it as orderly with no signs of panic, indicating potential for 'buy-the-dip' strategies among investors.
In the stock market, Amazon shares saw a 2.2% increase, even amid ongoing strikes at several facilities, which the company claims will not disrupt operations.
Crypto_Rover has characterized the current market situation as a 'final bear trap,' urging investors to remain steadfast as significant opportunities may arise in the coming months.
Following the Federal Reserve's recent announcement of a 25 basis point rate cut and a hawkish outlook for 2025, Bitcoin's price dropped by 4.6%, settling at $101,300.
Accenture's stock rose by 6% after it reported first-quarter fiscal 2025 results that exceeded revenue expectations, driven by increased demand for AI-related services.
Green warns that while the market outlook appears optimistic, short-lived sell-offs may occur as investors take profits, a normal part of a healthy market cycle.
Summary based on 469 sources
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Sources
The New York Times • Dec 18, 2024
How Fed Rates Influence Mortgages, Credit Cards, Savings and MoreForbes • Dec 20, 2024
Stark Fed ‘Wake-Up Call’ Triggers $500 Billion Bitcoin And Crypto Price RoutForbes • Dec 19, 2024
BlackRock Just Quietly Confirmed A Devastating Bitcoin Price Bombshell