Bitcoin's price took a surprising turn, dipping below $88,000. This sudden drop happened just before a major decision from the Federal Reserve about interest rates.
What's Going On?
The Federal Reserve, or 'Fed' for short, is like a bank for banks. It helps control how much money is flowing around the country by setting interest rates. When the Fed makes a move, it can affect how people feel about investing in things like Bitcoin.
- The Fed's decision on interest rates can make investors nervous, causing them to pull their money out of risky investments like Bitcoin.
- This nervousness, or 'FOMO' (fear of missing out), can lead to a rush of people selling their Bitcoin, which in turn drives the price down.
- Right now, $87,000 is a key price point that investors are watching closely to see if Bitcoin will bounce back or continue to fall.
