Bitcoin drops below $60K as economic concerns mount

Bitcoin experienced a 4.1% drop between 15th and 16th September, falling to $57,595 after failing to break through the $60,000 resistance level. This decline erased the gains made on 13 September when the price briefly surged to $60,580. While some analysts attributed Bitcoin’s earlier rise to a weakening US dollar and inflows into Bitcoin ETFs, the cryptocurrency has struggled to sustain momentum as traders remain cautious ahead of key economic events, such as the upcoming Federal Reserve interest rate decision.

Investors are closely watching the Federal Open Market Committee (FOMC) meeting on 18 September, where a 0.50% interest rate cut could potentially boost risk on markets like Bitcoin. However, if the Fed opts for a smaller 0.25% cut, it may negatively impact market sentiment, especially with lingering concerns over corporate earnings and China’s economic slowdown. In addition, regulatory pressure has intensified, with the US Securities and Exchange Commission (SEC) expanding its lawsuit against Binance, further weighing on investor confidence.

In the short term, Bitcoin’s price faces both macroeconomic and regulatory challenges. Despite ongoing demand from institutions like MicroStrategy and positive inflows into spot Bitcoin ETFs, investor sentiment has been shaken by a large, dormant Bitcoin address selling $12.7 million worth of BTC and the growing legal scrutiny of major exchanges.