Is Bitcoin on Shaky Ground? Market Signals Reflect Patterns That Foretold the Recent Slide in Trump Media Shares
Bitcoin's price rally has abated amid hawkish comments from Federal Reserve officials, as the cryptocurrency struggles to maintain its position above $90,000. Market indicators suggest a pullback may be imminent, paralleling patterns observed in the recent decline of Trump Media shares. Notably, the implied probability distribution from options markets indicates a shift towards lower price expectations for Bitcoin. Griffin Ardern of BloFin highlighted the left shift in the distribution for both Bitcoin and similar assets, signaling that traders perceive current prices as elevated with potential for future declines. Following Trump's recent election victory, Bitcoin peaked at $93,000 but has since dropped to around $88,100. Adding to the bearish sentiment are comments from Fed Chair Jerome Powell, who indicated no urgency to decrease interest rates, dampening hopes for enhanced liquidity. Despite this, many traders remain optimistic, betting on a possible price surge past the $100,000 mark.
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