Bitcoin Price Plunges Amid On-chain Data Warnings and Fed Speculations
Bitcoin's price is heading towards $70,000 amid concerns raised by on-chain data indicating weakening demand and tighter liquidity. Traders are also speculating on the Federal Reserve's upcoming decisions, with predictions pointing to no rate cuts in April.
Bitcoin's value is currently on a downward trend, inching closer to the $70,000 mark as on-chain data suggests a possible bear market looming in the cryptocurrency space. The diminishing demand and constrained liquidity levels highlighted by this data have sparked concerns among investors.
Moreover, traders are closely watching the Federal Reserve's actions, with many betting that there will be no rate cuts in April. This sentiment is echoed in prediction markets, which indicate little expectation of any immediate changes in interest rates.
The combination of these factors has added significant uncertainty to the cryptocurrency market, triggering fluctuations in Bitcoin's price. Analysts are closely monitoring these developments to gauge the potential impact on digital asset prices in the coming weeks.