Crypto analysts are divided on lingering market impact of the Fed's rate hike.
$Bitcoin(BTC.CC$ Heightened tension around the war in Ukraine pushed the market to mid- $40,000 on Sunday, GlobalBlock wrote in its Monday newsletter. Bitcoin's trading volume has remained at about 30,000 BTC per day since the Federal Reserve announced a 0.25 percentage point rate hike last Wednesday and has been down to fewer than 20,000 BTC per day since Sunday.
“Recent price moves may or may not be linked with the Fed rate hike after all," said Jason Deane, chief bitcoin analyst at Quantum Economics. "The U.S. is just one jurisdiction in what is a truly global market, so there are likely to be other factors.”
“The days of being able to link a particular action with a move in bitcoin price are over,” Deane said.
“Bitcoin is still looking for a clear catalyst as investors are concerned about the Fed’s more aggressive tightening policy in the coming month,” said Edward Moya, senior market analyst at Oanda. “With risk appetite on shaky ground, bitcoin might struggle to break above its recent consolidation pattern.”
“Recent price moves may or may not be linked with the Fed rate hike after all," said Jason Deane, chief bitcoin analyst at Quantum Economics. "The U.S. is just one jurisdiction in what is a truly global market, so there are likely to be other factors.”
“The days of being able to link a particular action with a move in bitcoin price are over,” Deane said.
“Bitcoin is still looking for a clear catalyst as investors are concerned about the Fed’s more aggressive tightening policy in the coming month,” said Edward Moya, senior market analyst at Oanda. “With risk appetite on shaky ground, bitcoin might struggle to break above its recent consolidation pattern.”
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Revelation 6 : The Fed rate hike is just a piece of the crypto issue. With everything that is wrong in the U.S. right now the disposable income level has dropped and that has starved the crypto market. Also it think a lot of retail investors have lost faith in crypto, taken their losses and walked away. They may not be back. All the hype about metaverse this and Shibaverse that have been so slow to develop, boredom and stagnation have set in. Just saying.