In early October, Bitcoin (BTC) hit an all-time high (ATH) of $126,000, and there was strong market enthusiasm for the asset to break the $130,000 barrier.
However, on October 10th, Tensions between America and China caused prices to plummet. At the time, President Donald Trump shared a message through his Truth Social account, warning that the government was considering “massive increases in tariffs” on Chinese goods.
The publication was influential enough to reignite fears of a trade war between the world’s two largest economies.
since then, Bitcoin price struggles to rise above $90,000as shown below:
Analysts at virtual currency exchange Bybit point out this. BTC still bears the traces of what has been called the “ghost of October 10th.”
The term is used to refer to a historic day when the market suffered a sudden and unprecedented shock. This left a psychological imprint that still influences investor behavior to this day.
As reported by CriptoNoticias, the price suddenly fell, causing heavy losses to leveraged traders and significantly increasing fear in the market.
According to CryptoQuant Explorer data shared by analyst MartyParty, the largest single-day liquidation of bullish positions in history was recorded. In total, more than 14,000 positions were forced to close. This is higher than the peak seen during the crypto winter and even the bankruptcies of FTX and Celsius in 2022.
Almost two months after “Black Friday,” BTC remains subdued, unlike traditional markets that have shown significant bullish momentum, with the S&P 500 nearing record highs and assets such as Apple, Walmart, and gold rising.
In other words, this difference in return on assets reveals: Investor confidence in digital asset markets remains affected For the aftermath of that day. Once BTC is freed from these ghosts, a new bull market could return.
An event that can help allay these fears is the rate cut by the US Federal Reserve (FED). On December 10th of this year, the Federal Open Market Committee (FOMC) will meet to define the economic policies of the world’s major financial countries.
The market takes for granted that the Federal Reserve, led by Jerome Powell, will: Interest rate reduction of 25 basis points applies.
Historically, BTC has responded positively to these types of measures. Lower interest rates lower borrowing costs and encourage liquidity into financial markets.
This injection of liquidity could be beneficial for assets that are considered risky, such as BTC and cryptocurrencies.
(Tag Translation)Bitcoin (BTC)
