While the Federal Reserve disclosed another possible interest rate hike, one of the well-known analytic firms has come up with its study on Bitcoin (BTC).
The firm, Glassnode, in its latest newsletter Jan Happel and Yann Aleman, its co-founders, are of the view that bitcoin’s price trend below $20,000 is due to excessive pressure facing another interest rate hike of 75 bps.
The founders claim that the developments surrounding the crypto space are being dominated by the Federal reserve’s strict financial measures. They also feel that this has led Bitcoin’s decreasing price trend towards a bearish cycle.
On the other hand, as the crypto space faces massive bear movements, Happel and Alleman claim that the volume of bitcoin has increased and this action in the midst of a bear market will increase the risk of more bear action.
Bitcoin Price Below $25k
The founders further claim that the futures-to-spot volume ratio which is already below zero has been pulled down even more due to June’s interest rate hike of 50bps. They also say that with rising interest rate hikes, investors and traders are losing confidence and speculating about the future of the crypto space.
Before concluding their analysis, both claim that J. According to Powell, the Fed chairman, bitcoin will trade between the $17,000 and $25,000 zone due to the latest 75 bps interest rate hike and further hikes. The founders also point out that despite the positive outlook of the spot market towards trading volume, the options and futures markets are pointing to more selling pressure.
At the time of reporting, Bitcoin is selling at $18,823 with a fall of 1.46% over the last 24hrs.
