Bitcoin dropped as much as 8.4% to $45,773 earlier this morning in New York trading. Bitcoin had pared back some of those losses to trade 3.79% down at $47,102. However, the decline pushed it below its average price over the past 200 days, which currently stands at around $46,720. The drop witnessed by the original cryptocurrency was the biggest daily percentage drop since Dec. 4.
Bitcoin drops ahead of the Federal Reserve meeting.
Bitcoin witnessed a significant drop along with the stocks in the U.S. ahead of a Federal Reserve monetary policy decision later this week. The Federal Reserve is expected to release its decision on Wednesday on whether it will move faster to wind down its bond purchases and signal it will start raising interest rates next year. While a low interest rate environment has sent stock and crypto markets skyrocketing this year, a rate hike and ending easy-money policies could turn the market in a bearish direction. Ether also fell sharply on Monday, despite the fact that the second-largest cryptocurrency by market capitalization previously proved it was more resilient to macro headwinds than bitcoin.
Buyers fail to take bitcoin over $50,000.
The leading cryptocurrency remains under pressure as buyers failed to break above $50,000 over the past week. The cryptocurrency is down about 6% over the past 24 hours and was trading around $47,300 at the time of publication. Immediate support is seen at the 200-day moving average -around $46,700- also at the bottom of a weeklong price range. However, given negative momentum signals, bitcoin is at risk of breaking below support, which could damage the intermediate-term trend. Bitcoin witnessed significant growth this year as it achieved its all-time high of nearly $70,000.