• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
No Result
View All Result
Breaking News: Dogecoin (DOGE) Soars 8%, But An Uptick In This Metric Suggests A Pullback
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
No Result
View All Result
NewsBTC
No Result
View All Result
Breaking News: Dogecoin (DOGE) Soars 8%, But An Uptick In This Metric Suggests A Pullback
Handing holding bitcoins

Bitcoin Collapses 7% As FED Gets Hawkish, Why This Could Be A Buy The Dip Opportunity

Reynaldo Marquez by Reynaldo Marquez
10 months ago
in Bitcoin
Reading Time: 3 mins read
Advertisement

Bitcoin records a 7% drop in the last week as yesterday’s Federal Open Market Committee (FOMC) hints at a more aggressive U.S. Federal Reserve. As investors reacted to a tougher monetary policy, selling pressure rejected BTC’s price from the mid area around its current levels.

Related Reading | The Bitcoin Resistance Level That Just Won’t Budge

At the time of writing, Bitcoin trades at $43,400 with a 3% loss in 24-hours and with potential to re-test more areas of support.

Get 30 FREE SPINS at Punt Casino - NO DEPOSIT REQUIRED! Start Playing Now.
No Deposit 40 FREE SPINS at Wild.io on SIGN UP. Wheel of fortune, daily bonuses, 10 BTC in prizes monthly! Start Playing Now!
Bitcoin BTC BTCUSD
BTC trading in a range since the start of 2022 on the 4-hour chart. Source: BTCUSD Tradingview

Investment firm Cumberland believes the FOMC minutes were directly responsible for the BTC’s bearish price action. Part of a “broader risk-off move”, the announcement affected several sectors across the macro markets.

Bitcoin’s recent weeks relief rally was triggered by the FED as well. Investors were expecting an increase in interest rates at around 25 bps. The financial institution announced this increase back in March meeting expectations.

This provided more clarity to market participants. However, the FED turned more aggressive on its approach as a result of a persistent inflation.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?

In that sense, the financial institution has forced market participants to adjust their views potentially shaking speculators from their positions. Cumberland said:

At this point, one has to wonder whether the Brainard/FOMC commentary which triggered this move represents new & meaningful information that should be factored into the market in the form of lower prices, or if instead this selloff is really just a classic case of weak hands rushing for the exits in a crowded trade.

The investment firm believes the second option is more likely. Therefore, they claimed the current downside price action could offer long-term traders with a buy the dip opportunity.

At these levels, as Bitcoin moves in a tight range between $48,000 and $37,000, without new macro-factors to oppose a rally, the market could offer a high reward/low risk scenario. The investment firm added:

(…) If we approach those lows in the absence of a fresh geopolitical catastrophe, risk/reward associated with adding more length seems attractive.

The Macro Outlook And Its Potential Impact On Bitcoin

A Senior Economist at Natixis, a global financial services company, claimed the FED has accelerated its monetary tightening. This could lead the institution to sell part of their balance sheet and keep the price of risk-on assets down.

3 shocks hitting Asia economies:
a) Tightening of financial conditions, led by the Fed hike of both the price of the USD, leading to not just direct credit shocks but also relative & risk aversion or deleveraging
b) China zero Covid (demand)
c) Supply shocks

— Trinh (@Trinhnomics) April 7, 2022

The U.S. FED announcement combined with a slowdown in China’s economy, the analyst claimed. The Asian giant has begun to tighten its monetary policy which indicates market participants could become more risk adverse and to an overall deleveraging.

However, this situation could become unsustainable in the short term and could force China to lose its monetary policy. The region currently faces economic weakness, the analyst said.

Related Reading | TA: Bitcoin Prints Bearish Pattern, Why BTC Could Drop To $42K

This could allow for risk-on asset like Bitcoin to reclaim previous highs. The analyst added:

Let me put this another way, with external financial conditions tightening, led by the Fed tightening aggressively in May & more, the question is whether Asian economies can follow & if they can’t follow due to economic weakness, then there’s policy divergence & asset implications.

 

Tags: bitcoinbtcbtcusd
Tweet123Share196ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Reynaldo Marquez

Reynaldo Marquez

Related Posts

Bitcoin BTC

This Is How The Bitcoin Price Will Be Affected By Macro: Charles Edwards

17 hours ago
Bitcoin Bull

CryptoQuant’s Bitcoin PnL Index Forms Bullish Crossover

18 hours ago
Bitcoin BTC BTCUSDT

Banking Giant Goldman Sachs Ranks Bitcoin As World Best Performing Asset

1 day ago
Bitcoin

Bitcoin Short-Term Holder Profit-Taking Spikes, Will BTC Price Recover?

2 days ago
Bitcoin price

Here’s Why The Bitcoin Price Rally Stalled For Now

2 days ago
Bitcoin

Bitcoin Surges To $23,000 As Miners Sales Sees Multi-Year Low

3 days ago

Premium Partners

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Trust Dice

Trust Dice

Review · Visit
Metaspins

Metaspins

Review · Visit
Coinplay

Coinplay

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit
Vave

Vave

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit
Coinplay

Coinplay

Review · Visit

Solana (SOL) and LEO Token (LEO) Witness Steep Decline; Flasko (FLSK) Looking To Help Investors Recover Loss

January 26, 2023

BudBlockz (BLUNT) Emerges as a Haven as Bitcoin Cash (BCH) and Stellar (XLM) Struggle to Grow

January 26, 2023

The Top Picks for a Bear Market: Hedera (HBAR), Toncoin (TON), and Orbeon Protocol (ORBN)

January 26, 2023

STEPN (GMT) gains 21% as GameFi, and NFT Industries Suddenly Bounce Back, Decentraland (MANA) named one of the top creditors of bankrupted Genesis Global, Snowfall Protocol (SNW) Seems like the best buy in 2023

January 26, 2023

Polkadot (DOT) On the Rise Following New Releases This Week, Tron (TRX) Down 3% , Snowfall Protocol Is Giving Investors an Edge Over the Bear Market In 2023 With Over 500% Price Gain

January 26, 2023

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Links

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2022 NewsBTC. All Rights Reserved.

  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play Games
  • Play Casino Games

© 2022 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.