Bitcoin rally appears to be over before it really started

The Bitcoin price made a big jump yesterday and rose above $61,000, which caused a lot of positivity in the market. Today, however, that euphoria seems to be short-lived, because the price has fallen back considerably.

At the time of writing, Bitcoin is trading at $59,300, indicating that yesterday’s surge may have only been a temporary rebound.

Strong week for Bitcoin, but mainly on Tuesday

Despite today’s setback, Bitcoin is still up 6.5% from a week ago. This increase is partly due to a positive report on US retail sales. Over the past month, total US retail sales increased by 0.1%, while core retail sales increased by 0.3%. Furthermore, the previous month’s numbers, after a revision, turned out to be better than originally thought, adding additional optimism to the market.

The effect of the assassination attempt on Trump

There has been speculation that Bitcoin’s rise could be linked to the second assassination attempt on Donald Trump, but this seems unlikely due to the time lag between the news and the price increase. The attack took place on Sunday, while Bitcoin’s price only rose on Tuesday. While the crypto market reacted to the first attack in July, a similar effect does not seem to have occurred this time around.

Market tension ahead of interest rate decision

For now, all eyes are on Federal Reserve Chairman Jerome Powell, who will announce the decision on the interest rate cuts tonight at 8:00 p.m. Dutch time.

These rate cuts have been expected for quite some time, and anticipation is high. If the cuts are significant, it could have a negative impact on Bitcoin, as it could signal an impending recession in the US. However, the most likely scenario is that the cuts will be limited in order to stabilize inflation and markets as much as possible.

Bitcoin is currently fluctuating between $59,000 and $60,000, and is likely to remain so until the Federal Reserve makes its decision tonight. However, more volatility is expected in the market after the announcement.