Bitcoin Falls Under High Selling Pressure, What Will Shoot Its Price?
22 September 2022 - 7:05AM
NEWSBTC
Bitcoin and other major altcoins have displayed a correlation
between macroeconomic factors and virtual currencies. After the
August CPI data release, almost all the crypto assets started
dropping. The report data showed a higher inflation rate,
increasing fear and crashing the prices of cryptocurrencies. The
FOMC meeting was scheduled to hold previously. But ahead of the
meeting, Bitcoin had been subjected to extreme selling pressure.
Investors seem to be afraid of what the outcome of the meeting
could mean to the value of the primary cryptocurrency. Related
Reading: Ethereum Price Still On The Decline, Can Buyers Defend
This Price Level? Bitcoin Value Is On Its Crucial Support BTC price
has seen vigorous twists from last weekend to date. While the token
tried to sustain its hold on the $20,000 region, it felt an
increasing downward pull. Hence, Bitcoin has gradually lost value
to hover around the $19K level. According to data, the $19,000
level is the 50-month average for Bitcoin. It reported that the
value is the crucial support level for the primary cryptocurrency.
Since 2015, BTC has been defending the level. Hence, it would be
more devastating for the token once it fails to uphold the support
level currently. It means that BTC investors will experience more
pain and price correction. MicroStrategy (MSTR) has purchased the
dip with Bitcoin’s dropped value. The software firm added 301 BTC
recently. According to the CEO of MSTR, Michael Saylor, the company
purchased with $6 million, giving an average price of $19,851 per
token. This new move brings the firm’s total Bitcoin holdings to
130,000 BTC. Possible Implication Of FOMC Meeting After the FOMC
meeting, the Federal Reserve will disclose its raise on the
interest rate. This move serves as a control measure in curbing the
rising inflation in the US. The Fed has been taking a hawkish
stance toward inflation rise. However, it may still be tightening
its measure since the CPI data is higher than the estimated value
for inflation. Related Reading: Prepare For Volatility: Data
Suggests Bitcoin Gets Chaotic During FOMC Meetings The policy
decision from the Fed has a significant impact on the price of
Bitcoin and other crypto assets. Prices in the crypto market have
been discouraging as most assets are red. There could be a slight
relief in the crypto market if the Fed implements a 75-bps hike on
the rate. This will be in line with the expected outcomes. But the
selling pressure in the market will become severe with a hike of
100 bps on the rate. Such a situation will be caused by imperiling
liquidity. Featured image from Pixabay, Chart: TradingView.com
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