Bitcoin continued to dive and lost the $42,000 mark as the Federal Reserve weighs an interest rate increase in March. Tensions between Russia and Ukraine have also swayed the digital asset, with a price of $35,000 potentially around the corner on major exchange Binance.
Bitcoin dives
According to CoinTelegraph, the anxiety in the markets triggered by the Fed’s rate hike and a possible Russian invasion over Ukraine have sent bitcoin’s price down. At the start of Thursday trading, the digital currency dropped from the $42,000 price mark, deflating investors.
James Bullard, president of the St. Louis Fed, told CNN of the possibility of an interest rate hike next month currently on the Fed’s cards to curb inflation: “We are missing our inflation target on our preferred measure... and policy is still at rock bottom lows and we’ve still got asset purchases going on.”
“This is a moment where we need to shift to less accommodation,” Bullard conceded.
Any stock revival would bear the brunt of a fast-tracked anti-inflation measure by the Fed, and bitcoin would certainly be affected given its correlation with equities.
Odds
Material Indicators revealed that bitcoin demand on Binance had gone cold and below $40,000. Any sudden move could send the crypto asset on a dive to $35,000 ground.
The source added, “Doesn't mean that local support can't hold or that the fractal has been invalidated yet, but does increase downside risk of longing from this range.”
The Federal Open Market Committee (FOMC) held a meeting in late January and pointed to a hike in March, according to the minutes.
“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run,” they read.
“In support of these goals, the Committee decided to keep the target range for the federal funds rate at 0 to 1/4 percent. With inflation well above 2 percent and a strong labor market, the Committee expects it will soon be appropriate to raise the target range for the federal funds rate.”
VALUEWALK LLC is not a registered or licensed investment advisor in any jurisdiction. Nothing on this website or related properties should be considered personalized investments advice. Any investments recommended here in should be made only after consulting with your personal investment advisor and only after performing your own research and due diligence, including reviewing the prospectus or financial statements of the issuer of any security. VALUEWALK LLC, its managers, its employees, affiliates and assigns (collectively “The Company”) do not make any guarantee or warranty about the advice provided on this website or what is otherwise advertised above. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. The Company disclaims any liability in the event any information, commentary, analysis, opinions, advice and/or recommendations provided herein prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.
Recommended Content
Editors’ Picks
Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms
Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.
Litecoin poised for double-digit decline after breaking ascending trendline
Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC
21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.