Bitcoin Loses Momentum Before FOMC
Bitcoin price started to plummet below $22,000. Over the past 24 hours, BTC’s capitalization has shrunk to $418 billion, the trading volume only slightly above 7%. BTC’s drop also dragged the entire market cap down to close to the $1 trillion mark.
The correction has erased Bitcoin’s gains over the past seven days, even losing 2% more. In the group of 10 largest cryptocurrencies in the world, only Ethereum and Cardano maintained a positive growth trend for seven days. On the other hand, Solana was the biggest loser, correcting by 9.12%.
Bitcoin has returned to a month-long trading range of $19,000-22,000. Cryptocurrencies could become the first portfolio to suffer before the next rate hike of the US Federal Reserve (FED) on the 27th.
Bitcoin and the cryptocurrency market have long been seen as risky assets like tech stocks in the US. Many metrics also show similar movements between Bitcoin and the Nasdaq 100. Therefore, a series of large technology companies in the US publish poor business reports is also a negative factor. impact on the performance of cryptocurrencies.
Looking back, both of the last two interest rate hikes by the US Central Bank hurt market sentiment. This year, Bitcoin’s value has evaporated by about 53%.
Although some analysts believe that Bitcoin’s worst sell-off is over, it is not excluded that the digital currency will fall further after the Fed tightens monetary policy.
Antoni Trenchev, the co-founder at crypto lending company Nexo, commented:
“If crypto investors can stomach this week’s likely Fed-induced volatility, it should transpire that Wednesday’s rise past $24,000 wasn’t a flash in the pan.”
Trenchev and Rick Bensinor of Bensignor Investment Strategies noted that $30,000 would be Bitcoin’s next test before it meets technical resistance.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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Harold
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