Bitcoin Price Dips Below $88K Amid FOMC Concerns

Bitcoin's recent price drop below $88,000 has raised concerns among traders as they anticipate volatility ahead of the Federal Open Market Committee meeting. According to Cointelegraph, Bitcoin fell close to $87,000, with traders eyeing potential weakness leading into the Fed's interest-rate decision.

Notably, a trader noted that Mondays often set the tone for price action for the week, suggesting that a lack of a weekend pump could indicate a pivot low. Market participants are expecting a 0.25% cut from the Fed, which is fueling caution in the market.

CoinDesk reports that K33 Research analysts believe this dip could set the stage for a December rebound, as they see more evidence of a potential upward movement rather than a further decline. They note that the current market has been influenced by structural selling, particularly from spot Bitcoin ETFs that have turned net sellers.

Furthermore, Glassnode highlights parallels between the present market and the early stages of the 2022 bear market, indicating rising stress among top buyers as a significant portion of Bitcoin supply is now underwater.

Despite these pressures, there continues to be capital flowing into Bitcoin, but the overall market remains cautious with reduced risk appetite evident in derivatives trading.