Bitcoin ($BTC), Price at $21K Next: Bitcoin ($BTC) Rapidly Losing Support Range
Bitcoin price crypto news: Bitcoin, the most popular cryptocurrency, is showing extreme volatility after stronger than expected Personal Consumption expenditures (PCE), data. The decline trend in stock markets is being replicated by the crypto market. The S&P 500 Index is down by 1.33%, while the Nasdaq is down 1.80%. It remains to be seen if the crypto market will recover over the weekend. A break from the current support zone would mean a loss of gains from January which was incredibly fruitful for crypto market.
Also read: U.S. Core PCE Inflation Rises 4.7%, More Interest Rate Increases Ahead
Although the crypto market experienced some corrections recently, with a weekly drop of 4.20%, traders hoped that the inherent trend was heading upwards. Michael van de Poppe, a popular trader, believes that BTC could rise to $25,000 if the top cryptocurrency’s price remains above $22,000. BTC is rapidly losing value due to the hot PCE inflation data from the US for January 2023. The stock market decline has caused the Bitcoin price to drop by 2.44% over the past hour.
As the PCE inflation data were released, the U.S. Dollar Index (DXY), rose to a two-month high of 105.14. A further drop in Bitcoin price could cause a further decline, but traders believe that this is a temporary reaction to the fear of US central bank rate hikes in the coming months. Another scenario being considered is a rise to $24,000 and then a fall in Bitcoin (BTC).
Also read: Whale dumps this top token in millions to Binance
The release of minutes from the Federal Open Market Committee’s meeting earlier in the week was met with neutral reactions by the crypto market.
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