As we are well aware that of late the global financial markets have begun to react to The Fed’s stance on monetary policy. Last week, the Fed gave indications to take aggressive tightening measures in spending and raise interest rates in an effort to control inflation. The string of stock markets around the world has experienced a downturn. Not to be outdone the crypto market is also affected.
The price of Bitcoin (BTC) has been trading at its lowest level since September which is below $ 40,000. The protracted price fall in the crypto market has raised concerns that sparked panic in the market. Basically, the crypto market has fallen about 35% from all-time highs.
Betting on an interest rate hike by the Fed has caused the BTC price to lose key support. However, yesterday’s fall to the $ 39,650 level has given a handful of investors the opportunity to increase their holdings until the BTC price traded at the $ 41,700 price level, up 0.2% in 24 hours.
Ethereum, meanwhile, has repeatedly raised red flags since November and prices have dropped from $ 5000 to $ 3000. For investors, the resistance level is $ 3,370 so the focus is then followed by $ 3,650. So far ETH has managed to overcome the $ 3,000 psychological support level which has to some extent given some momentum.
The market’s focus now continues to be on Jerome Powell’s speech on monetary policy. Rising interest rates can encourage investors to have a tendency to invest in economic activities such as buying bonds because they are more secure.
From a short -term point of view, BTC is in ‘oversold’ territory and is playing between $ 40,000 to $ 42,000. If the BTC price is not able to hold on to the $ 37,000 level then there is a probability for it to continue to plummet.
