Get ready for a potential crypto market slump in September, according to Bitfinex. The crypto exchange predicts that Bitcoin (BTC) could plummet as low as $40,000 in the coming weeks, a 30% drop from its current price.
Why the gloomy forecast? Bitfinex points to the “sell-the-news” effect that could follow upcoming interest rate cuts. This means that investors might sell off their crypto holdings after the news breaks, driving prices down.
Historically, September has been a rough month for Bitcoin. The exchange says the cryptocurrency’s price tends to be influenced by central bank decisions and the performance of traditional financial markets.
Bitfinex cautions traders to be aware of the risks and opportunities presented by this potential market downturn. They also highlight the increasing correlation between Bitcoin and traditional assets like the S&P 500, indicating that global economic conditions will continue to play a significant role in Bitcoin’s price movements.
While this forecast is based on historical trends and market analysis, it’s important to remember that the crypto market is volatile and unpredictable. Investors should always do their own research and make informed decisions before investing in any cryptocurrency.
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