The cryptocurrency market is facing renewed pressure as uncertainty surrounding the Federal Reserve’s interest rate path intensifies. With the ongoing( U.S.)government shutdown threatening to delay key economic data releases the Fed may be forced to make policy decisions based on incomplete information a scenario that weighs heavily on liquidity expectations for digital assets like Bitcoin.
Investors are increasingly pricing in the possibility that rate cuts may not materialize until( 2026 )adding further pressure to risk-sensitive assets. This shift in sentiment has prompted many traditional fund managers to scale back their exposure to cryptocurrencies especially as they closely monitor broader macroeconomic indicators the AI-driven market surge and movements in the S&P 500.
Technically Bitcoin’s recent drop below the 50-week moving average has accelerated selling and signaled the end of a two-year uptrend. Analysts now expect the price to move toward the 200-week moving average a historically significant support level.
Summary:
As these factors converge the digital asset market remains highly sensitive to shifts in global liquidity Until there is more clarity on the Fed’s next steps volatility is likely to persist across the crypto landscape.
Finally this is not investment advice. I advise investors to be cautious these days; the market is not favorable and no one knows when it will stabilize. Good luck to everyone.
