Sales Accelerate Once Again Following New Record Levels in Bitcoin

Bitcoin surged to a record level of $108,300 yesterday, but quickly retreated to around $103,000 following selling pressure. While the overall market experienced a 1% decline, Bitcoin dropped nearly 4% from its peak and is attempting to stabilize around the $104,000 mark this morning. During this process, significant outflows were also observed in Bitcoin ETFs.

After the rally, Bitcoin is facing a correction. Factors such as Trump's positive impact on the crypto sector and MicroStrategy's inclusion in the Nasdaq 100 Index have contributed to the recent rise in Bitcoin. However, investors have become cautious as they await the Fed's interest rate decision and future projections this evening, leading to another round of profit-taking at record levels.

Since Trump's presidential victory on November 5, Bitcoin has gained over 55%. Despite historical volatility warnings, investors are turning towards Bitcoin ETFs. In the Deribit options market, the highest open positions are concentrated at a price target of $120,000. Analysts recommend that investors approach Bitcoin with caution at current levels.

After the Fed's decision, there is a risk of a price reversal for Bitcoin. Yesterday, Bitcoin reached a new peak at $108,000. With a 150% increase over the year, Bitcoin surged due to rising demand and a slowdown in supply growth. A 25 basis point cut in interest rates by the Fed is expected to bring the total to 1% since the beginning of the year.

Bitcoin and other risk assets typically benefit from interest rate cuts. However, the Fed's hawkish stance due to stubborn inflation could lead to volatility in Bitcoin prices. Data released last week indicated that inflation remains a significant challenge. While a decrease in inflation is anticipated, this situation could influence central banks' short-term decisions.