Bitcoin (BTC) is facing a slight price correction, dipping to the $89,000 mark earlier today. According to CoinGecko, BTC has fallen 2.6% in the last 24 hours, 3.7% in the last week, 1.6% in the 14-day charts, 15.3% over the previous month, and 7.3% since December 2024. BTC’s price correction is surprising, considering the fact that the Federal Reserve reduced interest rates by an additional 25 basis points after Wednesday’s Federal Open Market Committee (FOMC) meeting. Let’s discuss why Bitcoin (BTC) is down today, and if it will rebound soon.
Why Is Bitcoin Facing a Correction? Will It Rebound?
Bitcoin’s (BTC) latest price correction is similar to what happened earlier this year in October. October is historically a bullish month for the crypto market. Moreover, the Federal Reserve rolled out a 25 basis point interest rate cut in October. However, Bitcoin (BTC) saw a price dip despite the bullish developments. The October price correction was likely due to macroeconomic uncertainties and the low chances of another interest rate cut this year. The ongoing dip could be due to a similar reason.
Also Read: Federal Reserve Cuts Interest Rates by 25bps, 3rd Time This Year
Many anticipated Bitcoin (BTC) to rally after the interest rate cut. However, fresh volatility seems to have thwarted the plans of many investors. Bitcoin’s (BTC) recovery may depend on macroeconomic factors, such as jobs data. The job market concerns may be keeping investors from making risky investments. Market participants are likely continuing their risk-averse strategy for the time being.
Bitcoin (BTC) may see some positive movements next year. Many experts predict Bitcoin (BTC) will climb to a new all-time high in 2026. Bernstein and Grayscale claim that BTC is no longer following a 4-year cycle. This means that the original crypto could climb to a new high next year. Bernstein predicts BTC will hit $150,000 in 2026 and breach the $200,000 mark in 2027.
