Bitcoin starts the week with a 2% drop, while stock markets, including the S&P 500 and Nasdaq, show growth. Analyzing the reasons for BTC's dip and expectations from the Fed meeting may impact its future.
Overview of Current Bitcoin Situation
According to Cointelegraph Markets Pro and TradingView, BTC/USD has fallen by 2% from the day's highs. Bitcoin continues to exhibit negative momentum despite the rise in stock indices like the S&P 500 and the Nasdaq Composite.
Analysis of Upcoming Fed Meeting
Crypto analyst Michaël van de Poppe links Bitcoin's price weakness to the upcoming Federal Reserve's interest rate decision. He highlights that BTC traditionally trades down before a Fed meeting. 'It's very likely we will continue to correct until the FOMC meeting,' he stated.
Current Market Sentiment
Despite rising asset prices, investor sentiment remains neutral. The Fear & Greed Index stands at 53/100, indicating a lack of panic, though many market participants are pessimistic. Analytical firm Mosaic notes that large investors are net short, which may serve as a counterpoint for price growth.
This week could be pivotal for Bitcoin amid changes associated with the upcoming Fed decision. Despite short-term declines, the presence of bullish signals on charts may support hopes for price recovery.
