Bitcoin
Bitcoin Price Sinks Below $26K Post Powell’s Jackson Hole Remarks
Bitcoin price dipped below the crucial level of $26,000 on Friday in the wake of hawkish comments by the US Federal Reserve Chair Jerome Powell. The digital asset has been trading sideways for the past few days amid economic uncertainty and a decline in risk appetite. Bitcoin’s total market capitalization has plunged further over the past day to $506 billion, while the total volume of BTC traded over the same period fell by more than 12%.
Fundamentals
Bitcoin price has posted significant losses over the past few weeks as economic jitters and a decline in risk appetite continue to weigh on crypto prices. The global cryptocurrency market has also been on a steep decline, with major altcoins, including Ethereum, falling to their lowest levels in months. The global crypto market cap has crashed to $1.05 trillion over the past 24 hours, while the total crypto market volume decreased by 13.39%. Bitcoin’s dominance has also declined over the same period.
The Crypto Fear and Greed Index, which measures the sentiment of the crypto market participants, has moved to a fear level of 34, hinting at a decline in risk appetite. As such, investors are likely to sell their crypto holdings irrationally, thus entering conservation mode.
The main catalyst behind this week’s cryptocurrency selloff is the hawkish comments by Federal Reserve Chair Jerome Powell. Speaking at the annual Jackson Hole symposium in Wyoming, Powell said that inflation was still too high despite progress, warning that further interest rate hikes could be yet to come. He noted that the Fed will remain vigilant as it contemplates its next moves, giving little indication that it’s ready to start soon. According to the CME FedWatch Tool, there is a 20% chance of the Fed hiking its interest rates in its next meeting in September.
“Although inflation has moved down from its peak — a welcome development — it remains too high… We are prepared to raise rates further if appropriate and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective,” Powell said.
Bitcoin Price Technical Analysis
Bitcoin price has been trading sideways for the past few days, moving between the tight range of $26,000 and $26,300. The digital currency has lost more than 11% in value in the month to date but remains 57.48% higher in the year to date. Bitcoin remains below the 50-day and 200-day exponential moving averages as seen on the daily chart.
Its Relative Strength Index (RSI) is in the oversold region at 25, indicating an increase in selling pressure, while the Moving Average Convergence Divergence (MACD) indicator remains in the red. The Bollinger Bands have widened, pointing to a higher volatility, making the asset riskier.
Therefore, the Bitcoin price is likely to continue falling in the short term as bulls struggle to gather momentum to push the price higher. As such, the next support levels to watch are $25,800 and $25,300. Conversely, a move above the 200-day EMA at $27,265.50 might pave the way for further gains.
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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