Bitcoin and Ethereum Drop Ahead of Federal Reserve Rate Cuts

Bitcoin and Ethereum dropped 5% above the expected Federal Reserve rate cuts. The decline in Bitcoin wasn't solely driven by fears of the Federal Reserve's actions. On Sunday, the FBI reported an apparent assassination attempt on Donald Trump in Florida.

Although the Republican presidential candidate was confirmed safe and unharmed by both his campaign and law enforcement, the news added to market uncertainty. As a result, Bitcoin is once again testing deep fear levels, leaving the market on edge.

Bitcoin's Initial Rally and Subsequent Decline

Bitcoin initially showed signs of rallying, climbing above the $60,000 mark and sparking hopes of a new surge. But now, only a positive catalyst can help lift the price. Ether led the losses with a 5.25% drop in the last 24 hours, marking its worst single-day decline since early August. Cardano (ADA) fell 5% and Solana (SOL) dropped 4%.

Vice President Kamala Harris took to her social media handle and released a statement about the unfortunate incident. Elon Musk also reacted to the news and condemned the act.

What's Next for Bitcoin Price?

According to analyst Jason Pizzino, Bitcoin has been in a consolidation phase, correcting around 33% since its peak in March. It is now showing signs of nearing the end of this correction.

Despite recent corrections, the analyst remains optimistic about Bitcoin's long-term potential, especially for those buying below $60,000.

He predicts that investors will look back in 6 to 12 months and see it as a good buying opportunity. The critical support level to watch is around $44,600 -- if Bitcoin stays above this, the bullish cycle is expected to continue.

Future Predictions and Market Sentiment

Looking ahead, he forecasted a potential breakout in late 2024 or early 2025, aligning with previous market cycles.

The analyst warns against being swayed by overly optimistic predictions of Bitcoin reaching $1 million but remains confident that Bitcoin will see significant gains over the long term.