Bitcoin
Bitcoin Price Plunges Below $30K: Fed Meeting Sparks Market Jitters
Bitcoin price has been trading sideways for the past few days as investors weigh what could be the monetary policy outlook ahead of the Fed meeting next week. Bitcoin, the largest cryptocurrency by market cap, has crashed by more than 5% in the past week but remains up by 80% in the year to date. The asset’s total market cap has slipped to $580 billion over the last day, while the total volume of the BTC traded over the past 24 hours jumped by 6.76%.
Fundamental Analysis
Bitcoin price was in the red on Friday, dropping below the important level of $30,000 as cryptocurrencies continue to underperform, indicating bearish cryptocurrency sentiment. The global crypto market cap has slipped to $1.2 trillion over the last day, while the total crypto market volume increased by 6.67% over the same period. Bitcoin’s dominance has also edged lower to 48.29%.
A look at the Crypto Fear and Greed Index shows a lack of confidence in the crypto market by investors. The Index has slipped from a Greed level of 64 seen last week to a neutral level of 55. This shows that investors have entered conservation mode, which could prompt them to look for alternative investments.
Bitcoin’s underperformance is worrying against a backdrop of several catalysts. Over the past few weeks, the crypto market has been buoyed by BlackRock and other financial bigwigs’ filings for spot Bitcoin exchange-traded funds (ETFs), which saw the Bitcoin price jump to the $31,000 zone. Ripple Labs’ court win also built on the bullish crypto sentiment. Even so, none of these catalysts has been long-lived, helping the crypto prices hold onto their important levels.
The focus will be on the US Federal Reserve’s two-day monetary policy meeting set to happen on July 25 and 26. Markets are widely anticipating the central bank to announce an interest rate hike after the meeting. According to the CME FedWatch Tool, markets are pricing in a 99.8% chance of the Fed implementing a 25-basis point hike in its meeting next week.
Bitcoin Price Outlook
Bitcoin price has been trading sideways for the past few days, failing to start a fresh rally above the crucial level of $30,000. At the time of writing, the digital currency was trading lower at $29,779.45. BTC is holding slightly above the bullish support level of $29,588.85. The asset remains slightly above the 50-day and 200-day exponential moving averages, as indicated on the daily chart. Its Relative Strength Index (RSI) has moved below the signal line and the neutral zone.
Therefore, there is a likelihood that the Bitcoin price will pull back further, dropping below the support at $29,588.85. If this happens, the next support level to watch will be $28.465.20. However, we cannot rule out a move past the crucial $30K level which could initiate a fresh rally to $31,000.
BTC Price Chart
Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.
Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.
Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
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