Analysts forecast Bitcoin could drop to $55,000 amid a stronger USD and expected Fed rate hikes this year.
Bitcoin traded near $61,000 on Wednesday, extending a 30% year-to-date decline and breaking below its $60,000 support level. The cryptocurrency has not seen such lows since late 2024, raising concerns among investors about further downside.
Support at $60,000 has held for much of the year, but analysts now warn of a potential drop to $55,000. A stronger U.S. dollar and expectations of multiple Federal Reserve rate hikes in 2024 are cited as key headwinds for Bitcoin’s fragile performance.
Markus Thielen of 10x Research predicts the downturn may bottom between late August and October, based on liquidity trends and macroeconomic conditions. The Fed’s new chair, Kevin Warsh, is seen as more hawkish than anticipated, adding pressure on risk assets.