Bitcoin Price Prediction: BTC Plunges to $41,000; Fidelity ETF Delays Amid CBDC Threat
In a dynamic turn of events, Bitcoin’s price plummeted to $40,930, marking a significant nearly 4% decrease as of Friday. This downturn comes amid a broader context of financial uncertainty, where the US Dollar is poised for a consecutive weekly rise due to subdued expectations for interest rates. Adding to the complexity of the crypto market, Fidelity’s anticipated Ether ETF faces delays, attributed to a surge in investor demand for more leveraged Bitcoin ETFs.
Compounding these market movements, former President Donald Trump has vehemently criticized Central Bank Digital Currencies (CBDCs) as a “dangerous threat to freedom,” asserting a strong opposition to the creation of digital dollars.
These developments weave a multifaceted narrative of fluctuating digital currency values, regulatory challenges, and political interventions, setting a dramatic stage for the future of cryptocurrencies.
The US dollar is expected to rise for a second consecutive week, driven by Fed’s cautious approach to rate decreases and indications of the country’s economic resilience. Currencies that are typically more vulnerable to volatility, such as the New Zealand and Australian dollars, experienced their largest weekly increases since November and June, respectively. Markets are now pricing in a 57% chance of a US rate cut in March, down from 75% a week earlier.
Dollar headed for second weekly gain on tempered rates outlook https://t.co/8LGCyyvIW8 pic.twitter.com/eZFxcKoWtY
— CNA (@ChannelNewsAsia) January 19, 2024
In 2024, the dollar index gained approximately 5% against the yen, rising 0.9% to 103.4 over the week. The yen was impacted by Japan’s core inflation slowing to 2.3% in December, leading analysts to revise their expectations for the
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