The Fed's dovish tone cannot save Bitcoin! Bitcoin is extremely close to the 60,000 mark, this indicator is very dangerous

FX168 Financial News Agency (Asia Pacific) reported that on Thursday (October 10), Bitcoin continued its downward momentum yesterday and is currently trading around $60,500. Although the latest Federal Reserve minutes released dovish signals, it failed to boost Bitcoin. At the same time, Musk bluntly said that if Trump loses the election, he will be finished, Bitcoin will be finished, and Dogecoin will be finished.

Yesterday, Bitcoin experienced a difficult day, opening at more than $62,000, but quickly fell to an intraday low of $60,541. Market volatility did not stop there. In the past 24 hours, more than $40 million of Bitcoin long positions were liquidated. In the entire cryptocurrency market, the total liquidation of long and short positions reached $169.45 million.

As of 7:35 p.m. ET on Wednesday, the overall cryptocurrency market was valued at $2.13 trillion, down slightly 1% on the day. Bitcoin was down nearly 2%, while Ethereum (ETH) was down about 1%.

Market analyst Maartunn shared data from Cryptoquant.com, noting that the previous day "the Coinbase premium had fallen to -$41, indicating strong selling pressure from US institutional investors."

As of Wednesday, Cryptoquant's data showed that the Coinbase premium gap had widened further to -$48.4. Coinbase Premium - This indicator tracks the difference in Bitcoin prices between Coinbase Pro (USD trading pair) and Binance (USDT trading pair).

A higher premium indicates active buying on Coinbase, while a lower premium may indicate selling or low trading activity. Cryptoquant's data also showed that South Korea's premium turned negative again in the past week.

This is not the first time a discount has occurred. Two discounts occurred in September, with a discount of 1.15% on September 25. And on October 5, there was another drop, but this time it only fell by 0.11%. Currently, the premium is 0.8%, staying below 1%.

These changing premiums and market trends show a delicate balance between institutional investors and the broader digital asset environment. As prices continue to fluctuate, global sentiment and ongoing uncertainty continue to affect the cryptocurrency market.

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From a fundamental perspective, the minutes of the Federal Open Market Committee (FOMC) showed that the "vast majority" of participants supported a 50 basis point cut in US interest rates this year, bringing it to a range of 4.75% to 5%.

A minority preferred a smaller 25 basis point rate cut, fearing that a larger cut might be considered premature. But those who support a larger cut believe that it is more consistent with recent inflation and labor market indicators. In addition, they emphasized that this adjustment will help maintain the strength of the economy and the labor market while continuing to move toward the 2% inflation target.

Other major altcoin price movements also mirrored Bitcoin's weakness, with Ethereum (ETH) down 1% over the past day, followed by Solana (SOL) down 2.5% and BNB coin (BNB) down 2.3%.

Andrew Kang, co-founder of venture capital fund Mechanism Capital, said the disconnect between cryptocurrency and stock performance regarding the impact of falling interest rates is a natural phenomenon.

Kang noted that stocks are more closely tied to U.S. interest rate policy because falling interest rates affect cash flow and the value of mature corporate debt markets used to finance growth. Therefore, stocks rebounded after the release of the minutes, while cryptocurrencies still lagged.

Traders remain in uncertainty and will most likely take clearer action after the release of U.S. economic data on October 10.

Elsewhere, on October 7, local time, American show host Carlson released a video interviewing Musk. Musk said that if Trump loses the election, he will be finished, Bitcoin will be finished, and Dogecoin will be finished.

Musk said that if Trump loses the 2024 U.S. election, he will be finished. When the host asked, "What happens if Trump loses the election?" Musk smiled and replied while drinking water, "Then I'm done." Then, Musk continued to smile and said, "How long do you think my sentence will be? I don't know if I can still see my children."