How low could Bitcoin (BTC), price drop amid stock market plunge?
Bitcoin (BTC), Price News: The Federal Reserve’s comments about its expectations regarding raising the interest rate have made the prospects for Bitcoin (BTC), Price, very dim. The U.S. Fed stated that it expected to keep increasing the rate at the December FOMC meeting, which was held earlier in the week. This resulted in a decline in stock prices and cryptocurrencies. As the stock market continues to perform poorly, it remains to see how BTC will react in the future.
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In recent quarters, BTC has shown a stronger correlation to traditional markets. The macroeconomic outlook appears to be in a prolonged bearish trend, but the crypto market is also experiencing problems like the FTX-related contagion.
Chain metrics indicate a weak sentiment for BTC prices in the near-term. This is holding up better after the Fed’s announcement of rate hikes. Due to criticisms around Binance proofs of reserves, there have been high levels of crypto liquidations this week. Jackis, a crypto trader, stated that the BTC chart for this week was looking weak.
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“The Bitcoin Weekly candle (still active) is currently very weak. We had been hoping for a reclaim of 17,600$, but we got a rejection post FOMC.
The top cryptocurrency is now on a decline from the peak it reached before the Fed rate hike announcement. The crypto market reacted negatively to the announcement by the Fed that it would continue raising rates for a long period. According to CoinMarketCap, the BTC price is at $17,016, a drop of 3.93% over the last 24 hours.
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