Bitcoin Swift Drop After Rapid Surge in Price

Bitcoin Swift Drop After Rapid Surge in Price

With the worsening US inflation outlook, Bitcoin swift drop after a rapid surge to $61,000 exacerbated the existing negative market sentiment, pushing the price to local lows of $60,561 on centralized exchanges, erasing gains made over the weekend.

Bitcoin Swift Drop to $61K

Data from TradingView revealed that Bitcoin’s price began to gradually recover after a 2% daily drop. Powell indicated that the Fed needed more evidence that conditions were right to lower interest rates—a significant concern for crypto and risk asset investors. He stated, “We want to understand that the levels we see are a real reading of what is truly at the core of inflation.”

This statement led to a slight reduction in the likelihood of a rate cut at the Fed’s Federal Open Market Committee (FOMC) meeting in September. According to CME Group’s FedWatch Tool, the probability of a rate cut remained around 65% at the time of writing.

Bitcoin Market Dynamics

Bitcoin market participants watched with disappointment as the BTC/USD pair returned to the lower end of a familiar range. Popular trader Skew highlighted manipulative liquidity movements on exchanges through order spoofing; the latest instance involved placing and removing large orders to create resistance.

Skew noted that spot demand on Binance, the largest global exchange, was at $60,000 and below during the day. Others observed that Bitcoin filled the latest gap created by the weekend rise in CME futures.

Concerns from Industry Experts

Charles Edwards, founder of crypto asset fund Capriole Investments, expressed concern over the recent Bitcoin price movement. He suggested that the market was struggling to reconcile with the ongoing capitulation phase among miners.

Edwards shared his views on X, stating, “This doesn’t have to happen, time heals all wounds, but Bitcoin is not patient. Either we are lucky and the price consolidates between $60,000 and $70,000 within two months, or we will face a healthy overdue correction.”


To conclude, Bitcoin swift drops to $61,000 after a rapid surge, and navigating through these turbulent times, the market remains on edge. The interplay of macroeconomic factors and internal market dynamics continues to shape Bitcoin’s price trajectory, leaving investors to watch closely and brace for potential corrections.

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