Analysts name the main reasons for bitcoin’s record drop of 9% per day

Bitcoin and the broader cryptocurrency market have fallen significantly as investors prepare for an important meeting of the US Federal Reserve later today. The flagship of the cryptocurrency market is down 9.5% in just one day, currently trading at $ 56,936.

Expectations were rising around possible indications of a longer-term interest rate hike, prompting market participants to prepare for the potential consequences for digital assets. At the start of trading on Monday, bitcoin fell to a weekly low of $ 61,928, after which it recovered slightly. However, the decline continued today.

Demand for about a dozen U.S. BTC-ETFs remains moderate. Bitcoin’s growth until 2024 has slowed to 47% from more than 70% in mid-March, when the cryptocurrency hit a record high of almost $ 74,000.

The Federal Reserve is expected to announce its interest rate decision today at 21:30 (Kyiv time). The probability that the Fed will leave rates unchanged is 95.6%. on May 3, the United States will also publish the April unemployment rate.

Speculation ahead of the Federal Reserve meeting has fueled debate among market participants about the potential trajectory of interest rates and its implications for digital assets. Rising interest rates are perceived as a headwind for risky assets such as bitcoin.