Bitcoin dropped to its lowest level in over a month Monday (July 24).
The price of bitcoin fell sharply and suddenly at the start of the week, trading just over 3% lower at $29,198.15, after initially slipping as low as $28,995.02, its weakest level in over a month, CNBC reported Monday.
The sharp decline caught many off guard, prompting questions about what might be causing such a dip, according to the report.
The move came on the heels of a Wall Street Journal report that raised further alarm among investors over Binance, the world’s largest crypto exchange, the report said. Binance has been in hot water lately, with the Securities and Exchange Commission (SEC) having sued the company last month and it is now the target of a Department of Justice (DOJ) investigation.
There is also the added factor of the Federal Reserve meeting on Wednesday (July 26), with investors watching to see what policy outcome they will announce, per the report.
Commenting on the current market conditions, Yuya Hasegawa, crypto market analyst at Japanese bitcoin exchange Bitbank, told CNBC, “Bitcoin is still fluctuating within a narrow range for a little more than a week, and it will likely continue to do so until the conclusion of this week’s FOMC [Federal Open Market Committee] meeting.”
He added that the market had “almost fully priced in another 25 basis point rate hike by the Fed this week” and investors are now eagerly awaiting whether the central bank will decide to carry out another hike by the end of the year, as the FOMC has previously suggested.
Rate increases have been a source of pressure for bitcoin all year, with recession fears also playing a role and traders paying close attention to recent signs of slowing in the economy, according to the report.
This report comes two weeks after it was reported that Standard Chartered raised its bitcoin price predictions, projecting the crypto asset to reach a price of $50,000 by the end of 2023 and then hit $120,000 by the end of 2024.
Although bitcoin hit all-time highs of nearly $69,000 in 2021, Standard Chartered sees more potential for growth, Bloomberg reported July 10.