Bitcoin
Bitcoin Price Slips as Markets Chew on the Fed’s Interest Rate Decision
Bitcoin price inched lower on Wednesday as markets chewed on the Fed’s latest interest rate decision. At the time of writing, Bitcoin price was trading slightly lower at $28,508.98. The asset’s total market cap rose slightly for the day, while the total volume of BTC traded slipped by nearly 8%.
Fundamentals
Bitcoin price was changing hands at $28,500 on Wednesday as investors digested minutes from the Federal Open Market Committee (FOMC) two-day monetary policy meeting. According to the released minutes, the committee decided to raise the target range for the federal funds rate to 5% to 5.25%.
Economic activity in the first quarter expanded modestly, while job gains have been robust in recent months. The unemployment rate remained low in the quarter, while inflation rates remained elevated. The FOMC seeks to achieve maximum employment and inflation at the rate of 2% in the long term.
In assessing the appropriate stance of monetary policy, the Committee said that it will continue to monitor the implications of incoming information for the economic outlook. The Committee stated that it would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals.
US Treasury yields fell on Wednesday on the back of the hiked fed rates. The yield on the 2-year Treasury yield fell to 3.935%, while the 10-year Treasury yield dipped to 3.401%. The US dollar index also slipped to $101.311 at press time.
An environment of higher interest rates tends to be bearish for risk assets such as cryptocurrencies and stocks. As such, the global crypto market is likely to be volatile in the ensuing sessions as markets digest the rate hike voted for by 11 members of the committee including Fed chair Jerome Powell.
Bitcoin Price Outlook
Bitcoin price has been under intense pressure for the past few days as markets eyed the Fed’s interest rate decision. Even so, the digital asset has managed to remain above the 50-day and 100-day moving averages, as well as the 50-day and 200-day exponential moving averages. It is also hovering above the 50-day and 100-day simple moving averages.
However, its Relative Strength Index (RSI) has remained below the neutral zone, while the Moving Average Convergence Divergence (MACD) suggests a bearish trajectory.
Therefore, Bitcoin price is likely to fall further in the short term as markets take in the latest decision by the US central bank. Even so, I expect the digital asset to remain above the important support level of $28,000. On the flip side, a move past the $29,000 level will pave the way for bulls to retest $30,500, invalidating the bearish thesis.
BTC Price Chart
Bitcoin price was trading higher on Tuesday, building on gains made in the previous trading session. At the time of writing, Bitcoin was trading 1.04% at $27,129.92 after clearing the crucial $27,000 level. The coin’s market cap has risen higher to $526 billion over the last day, while its total volume edged higher.
Macroeconomic Concerns
Data by Coinmarketcap shows that the global crypto market cap has increased by more than 1% over the last day to $1.13 trillion, while the total crypto volume jumped 20% over the same period. Bitcoin’s dominance also increased over the day.
Bitcoin’s price was gaining on Tuesday on the back of greenlight of some retail crypto trading by Hong Kong. Hong Kong’s Securities and Futures Commission announced on Monday that it would allow retail traders to trade certain crypto assets beginning June 1 on registered platforms. Markets widely anticipated the move amid Hong Kong’s broader efforts to become a global crypto hub.
Even so, Hong Kong’s new guidelines are in sharp contrast with China’s ban on crypto trading in 2021, as well as the continued US regulatory crackdown on cryptocurrencies since the fall of crypto exchange FTX. The Securities and Futures Commission of Hong Kong (SFC) has already licensed two digital asset platforms, Hash Blockchain and OSL.
Despite Hong Kong’s move to support crypto assets, concerns about the Federal Reserve’s monetary policy outlook have continued to weigh on markets…
Bitcoin price was headed for its worst week since November 2022 on Friday as volatility, buoyed by low liquidity continued to outweigh crypto markets. Bitcoin has dropped below the crucial support level of $26,500, changing hands at this level. The asset’s price has dipped by more than 11% in the past week, while its total market cap inched lower to $516 billion.
Fundamentals
Bitcoin price has been on a downward trend for seven consecutive days amid congestion in the network’s system and the regulatory crackdown on cryptocurrencies. The digital coin has been struggling to gain bullish momentum for the past few days. Bitcoin is currently up by 60.54% in the year to date, but its prices have remained volatile.
The crypto market has been battling low liquidity, regulatory crackdown, and macroeconomic concerns. Data by Coinmarketcap shows that the global crypto market cap has slipped to $1.11 trillion, down from $1.27 trillion earlier in March. Bitcoin’s dominance has also inched lower in the past few days.
The regulatory crackdown on cryptocurrencies has ramped up since the fall of crypto exchange FTX. Ripple Labs has been in a lawsuit against the US Securities and Exchange Commission (SEC) over the last year over concerns about its native coin XRP. Additionally, SEC recently warned Coinbase over potential securities law violations. Binance, the largest cryptocurrency exchange platform, was recently accused of violating trading rules by the Commodity Futures and…
Bitcoin price has been on a downward trajectory for five consecutive days on the back of network congestion on the asset’s blockchain. The asset has been changing hands at $27,600 for the past few days. Bitcoin’s total market cap has crashed to $533 billion, while its total volume inched lower. BTC has dropped by nearly 9% in the past five days and 3.90% in the past week.
Fundamentals
Bitcoin price has been in a five-day freefall, dropping below the crucial level of $28,000 as the coin’s network works through congestion. Bitcoin, the largest cryptocurrency by market cap, as well as Ethereum, has been struggling to gain bullish momentum for the past few days. Ethereum, the largest altcoin by market cap, has dropped below the important $1.9K level.
Binance, the largest cryptocurrency exchange, moved over $4 billion worth of Bitcoin earlier this week to its crypto wallets. This high volume of transactions resulted in congestion on Bitcoin’s blockchain, prompting Binance to halt Bitcoin withdrawals on its platform twice in 24 hours. Additionally, the congestion also saw transaction fees jump to their highest level in six years. Binance announced that it would work to enable the Bitcoin Lightning Network which will help in such situations in the future.
Focus has now shifted to the US Consumer Price Index (CPI) data slated to be published later on Wednesday. The reading is expected to show that the monthly…
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