Bitcoin is coming close to breaking down to unpleasant range
The performance of bitcoin that we saw two days ago is quite different from what we are seeing in the market today. The first cryptocurrency price to break below the $17,000 threshold after the Fed announced a 50 bps rate hike was, for whatever reason, perceived as a positive factor ahead of Jerome Powell’s press conference.
In the last few hours, Bitcoin has reached the $17,000 price threshold once again, despite rallying to almost $18,500 a few days ago. Such a price performance was a reaction to an upcoming 50 bp hike, after a series of 75 bp hikes.
Despite the rate hike cycle winding down, the FED is still executing a tight monetary policy which may in no way be favorable to assets like bitcoin or cryptocurrencies in general. The market’s positive reaction to the Fed’s upcoming decision has been illogical, despite falling inflation.
Even without the FUD around Binance, the digital assets market has been struggling with massive outflows and almost nonexistent inflows into the industry from both retail and institutional investors.
The price of digital gold was moving in the same trading range for the past two months, which is a significant factor for a highly volatile and speculative asset like bitcoin that attracts a large portion of the trading volume from being a great volatility risk instrument.
Unfortunately, the short-term future for the cryptocurrency market looks grim, and markets are struggling to find ground to bounce off of, considering the lack of drivers that would make investors push more funding to the industry, especially after the implosion of FTX.
