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Wednesday, February 8, 2023
HomeNewsBitcoin Slips To 1-Week Low Forward Of Fed Hike Price Determination

Bitcoin Slips To 1-Week Low Forward Of Fed Hike Price Determination

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On July 26, the worth of Bitcoin (BTC) fell to a degree not seen in additional than every week as investor nervousness grew in anticipation of the Federal Reserve elevating rates of interest.

Bitcoin Slumps

According to TradingView, the main cryptocurrency is at the moment buying and selling beneath $21,000 at $20,955, down 4.26 % in the present day and an extra 7.17 % over the previous week.

As a consequence, the whole market worth of the digital asset is at the moment $400.13 billion. More than every week in the past, on July 18, BTC had a market cap of this quantity.

Hopes for a long-lasting Bitcoin restoration have been dashed by the dip, which has introduced the coin’s buying and selling vary again to $19,000 to $22,000.

Related Reading | On-Chain Data: Bitcoin Whales With 10k+ BTC Have Been Growing

It’s attention-grabbing to notice that cryptocurrency consulting agency Eight Global has a extra upbeat outlook for the Federal Open Market Committee (FOMC) assembly on July 27. The web site acknowledged that the federal funds charge is important for cryptocurrency as a result of:

“Crypto is correlated to the stock market, and the stock market is impacted by the federal funds rate. Rising rates hurt the performance of stocks while lowering rates make stocks more interesting as investment.”

The majority and probably end result, in keeping with Eight Global, is a hike of 75 foundation factors, though the market has already factored this in.

What to anticipate tomorrow:

An enhance of 75 bps is predicted by the bulk and is the probably end result. A 75 bps hike will both have a impartial or bullish end result for shares and crypto, as this has been priced in throughout the previous weeks. pic.twitter.com/MH3Hx8oQ9k

— Eight (@eight_global) July 26, 2022

BTC/USD trades at $22k. Source: TradingView

With the markets correcting, cryptocurrency buying and selling guru Michal van de Poppe acknowledged that he’s “looking at a $20.5K-20.7K area to hold for Bitcoin going into FOMC tomorrow.”

Related Reading | Bitcoin Puell Multiple Lifts Off From Buy Zone, Bull Momentum To Follow?

Featured picture from Shutterstock, charts from TradingView.com

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