Extreme Downward Momentums Persists in Crypto Market - 30 January
Strong downtrend continues in crypto market, BTC price dipped to $81,118 and ETH price went down to $2689 within last 24 hours. BNB price also declined to $835.55. Although BTC recoverd to $83,009.73 as off now, ETH trading around $2752.06 and BNB price recovered around 850.25.
Concerns about the Fed's independence and economic uncertainty are weakening the dollar. 💵
The US Dollar Index (DXY) is trading near its lowest level since February 2022. Although the Fed left interest rates unchanged at 3.75%, two governors, Stephen Moore and Christopher Waller was against this decision and expressed the need of a 25 basis-point rate cut. Political pressure on Fed leaders has raised doubts about US central bank's independence. ⚠️
A weaker dollar is fueling selling pressure. Global moves toward dedollarization and rising geopolitical risks are pushing investors into safe-haven and non‑USD assets. As a result, the dollar faces a clear short-term downtrend and heightened volatility. 📉
What this means for crypto: a weaker dollar and a Fed that appears less hawkish are bullish signals for risky assets, including Bitcoin and Ethereum. More money is now flowing into crypto markets. So sudden swings and profit-taking are possible. 🪙
Bottom line: dollar weakness, Fed uncertainty and downtrend in crypto market are creating opportunities in crypto, but traders should watch for rapid moves and manage risk. 🔒🌍 Follow for more market update @TZ_Crypto_Insights