The Fed told everyone, again, they're raising interest rates this year. Bitcoin and other financial markets didn't seem to like that.
shows that after oscillating around support at $46,000 for the past couple of days, Bitcoin was hit with a wave of selling that pulled the price to an intraday low of $43,717.Based on the current situation, it is widely expected that the Fed will beginits benchmark interest rate in March, “which would mean that balance sheet reduction could start before summer.”
Here’s a look at what crypto analysts are saying about the latest Bitcoin price drop in BTC and what could be in store in the weeks ahead as the easy money policies of the Fed come to an end and interest rates start to rise.A foreshadowing of Jan. 5’s pullback was offered by crypto analyst and pseudonymous Twitter user Rekt Capital whoBTC/USD 1-week chart. Source: Twitter“Both saw BTC consolidate inside two Bull Market EMAs .
Should the price not break back above $46,000, the market could be in for an extended bear period that has the potential to see BTC retrace to the low $30,000 range.The scenario currently facing the market was succinctly addressed in the following chart posted by options trader and pseudonymous Twitter user Nunya Bizniz.“BTC monthly: Drops below the current RSI level have been ugly. This time?”
The overall cryptocurrency market cap now stands at $2.123 trillion and Bitcoin’s dominance rate is 39.4%. The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
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