Bitcoin price drops another 4.5%

Bitcoin price drops another 4.5%

Bitcoin and altcoins are falling again, as Jerome Powell suggests in the coming steps this year under the quantitative tightening of the feed.

After some rebound earlier in the day on Wednesday, the cryptocurrency market fell again following the announcement of the Fed meeting. Its chairman, Jerome Powell, has recommended tough measures coming this year to control inflation. After breaking above the $ 38,700 level on Wednesday, bitcoin corrected another 4.5% today, falling below $ 36,000 on the impact of the FOMC meeting, bitcoin is trading at $ 35,944, down 4%, and its market capitalization stands at $ 689 billion.

In response to changing market conditions, Powell spoke of the need to change Fed policy. He said the first interest rate hike would happen around March 2022. In addition, the Fed Chairman also ended the bond purchase program.

He also explained that the nutritionist was considering reducing his balance sheet. The message is clear: the Fed is likely to take bold, quantitative augmentation action this year. Jeffrey chief economist Aneta Markowska said:

Currently, we maintain our baseline scenario of 4 raises this year, but we now view it as a floor rather than a ceiling. The Fed did nothing to maintain the market expectations of 4 bulls, prompting the market to expect even more. »

The US stock market turned red, the Dow Jones Industrial Value Index corrected 300 points. Similarly, the S&P 500 corrected 30 points and the Nasdaq Composite corrected 68 points.

Technology stocks suffered, and banking and energy stocks recovered somewhat. As market sentiment turned negative on Wednesday, the ripple effect was also seen in the crypto space.

The crypto space lost all of its gains on Tuesday. Bitcoin and altcoins quickly came under heavy bearish pressure. Despite this recent market volatility, some market analysts continue to remain bullish on bitcoin for the year 2022. Mike McGlone, a strategist at Bloomberg Intelligence, said bitcoin is trading at a 30% discount to its 20-week average. The analyst suggested that these could be signs of a new support formation.

There were many predictions that bitcoin was likely to hit $ 100,000 levels this year. However, in the way bitcoin has tracked the US stock market, we can only expect more volatility. Outside of Bitcoin, altcoins also fell sharply.

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