Bitcoin briefly rose beyond $21,000 per unit – only to fall back to around $20,600 at the time of writing following news that the Fed was hiking rates another 75 points.
Bitcoin Takes Another Dip
The Fed has been repeatedly hiking rates as a means of fighting an ongoing surge in food and gas prices. Inflation has reached a super high, and Americans are having an incredibly tough time under Biden, who has shown repeatedly that he is not mentally fit to lead the free world. Many citizens agree with this given a recent poll that shows Biden hitting a new approval low and most of the country’s residents saying they would vote for Trump in 2024.
But until that next election comes (and it couldn’t come soon enough), we are stuck dealing with Lyin’ Biden’s poor economic policies and “America Last” agenda. Bitcoin is presently down roughly 70 percent from its all-time high in late November of last year, and some analysts are of the notion that the world’s number one digital currency by market cap has not yet bottomed out.
Marcus Sotiriou – an analyst at crypto broker Global Block – explained in an interview:
Although a 50-basis point hike was anticipated for many weeks, last Friday’s inflation data forced the market to price in a more aggressive hike with huge sell pressure. Therefore, a 75 bp hike was priced in for the short-term leading to a rally. This is due to concerns around an earnings recession on the horizon resulting from the Federal Reserve’s aggressive monetary policy. According to Bank of America, stagflation fears are the highest since 2008, and profit outlooks are the worst since the GFC (Global Financial Crisis) too.
He warned that the economy could witness an increase in both foreclosures and bankruptcies in the coming months if things get worse. Susannah Streeter – a senior investment and markets analyst – seems to agree with everything Sotiriou mentioned, stating:
There is unlikely to be sustained relief from the sinking feeling that has hit financial markets this week. After the initial boost of optimism that the Federal Reserve was going to get a handle on inflation with the 0.75 percent rate rise, the mood soured on Wall Street as concerns mounted that the price spiral was going to be an even harder nut to crack without fresh aggressive hikes.
Has It Finally Bottomed Out?
Alex Kuptsikevich – an FX Pro senior market analyst – offered some good news in that bitcoin has never fallen below the high of a previous bull cycle. Thus, now that it’s trading for about $20K – the high it attained in 2017 – the currency isn’t likely to dip any lower. He said:
The bearish focus remains on the $20,000 level, the former peak of 2017. At no time in past cycles has BTC fallen below the high of the previous bull cycle.