BTC/USD: Bitcoin Wipes Out 5% in Sudden Price Drop. What’s Next?

Boatload of scheduled economic events this week. But the biggest one is on Wednesday when the Fed calls the shots. 🪒 Bitcoin Shaves Off $5,000Bitcoin prices washed out about 5% to start this week’s trading resulting in more than $130 million of long positions getting liquidated. The sudden price drop, which happened without any obvious reason (at least to the public), pressured prices to $100,000 from a weekend high of $105,000 per token. The selloff caused the OG crypto to lose its grip over the $2 trillion market cap, sliding to a Monday morning level of $1.9 trillion. Now traders pivot to what’s coming next. 🤩 Plenty to Look Out forThis week is jam packed with scheduled economic events that could rejigger the crypto market landscape. Perhaps the biggest one is Wednesday’s interest rate decision from the Federal Reserve — while officials are expected to leave rates unchanged, Fed boss Jay Powell’s speech after the decision is likely to be a market mover. Interest rates and Bitcoin have gotten increasingly correlated as lower rates help the crypto market become more liquid due to money being more available. And vice versa — high rates help keep a lid on optimism due to limited liquidity. 👀 Even More to Look Out forThursday is bringing the preliminary GDP data for the US economy. On a quarterly basis, the US economy is expected to post growth of 2.7%. Anything above or below that could trigger a sharp reaction across the crypto board. Friday is coming with the Fed’s favorite inflation measure — the core personal consumption expenditures index. For December the core PCE index is expected to show prices increased 0.2% on a monthly basis and 2.9% on an annualized basis. Brace for volatility..