Bitcoin Moves to a 3-Month Low, But Bottom Could Be Reached
Bearish sentiment continued in the new year as Bitcoin lost more ground as minutes from the Federal Reserve’s December meeting revealed the possibility of a faster policy tightening.
During Friday’s Asia session, the top cryptocurrency tanked almost below $41,237 according to CoinMarketCap and recorded the lowest level since September 29. A week into 2022, Bitcoin’s value has declined 12%.
After the Fed minutes revealed policymakers are considering aggressive interest rate hikes alongside quantitative tightening (QT), tech stocks and crypto markets reacted and quickly incurred new losses which continued until Friday.
Nevertheless, Bloomberg’s Mike McGlone expects Bitcoin and crypto soon benefitting from the Fed’s plans. I a research note on Thursday he explained:
“Expectations for Federal Reserve rate hikes in 2022 may support a win-win scenario for Bitcoin vs. the stock market. Stretched markets have become common, but commodities and Bitcoin appear to be early reversion leaders. It’s a question of bull-market duration, and we see the benchmark crypto coming out ahead.”
On Wednesday, crypto analytics firm CryptoQuant also commented on current dynamics and believes that Bitcoin (BTC) could be at an inflection point.
Bitcoin is close to a level where a further drop in price seems unlikely, the firm told its Twitter followers:
1/ The average duration of the bitcoin drawdown might indicate that #bitcoin is close to where most of the drawdowns typically stop.
“Bitcoin Drawdowns-How Long?”
by @CryptoAlliance_https://t.co/O3FW65tWRs
— CryptoQuant.com (@cryptoquant_com) January 5, 2022
https://platform.twitter.com/widgets.js
At the time of writing, Bitcoin is moving hands at $41,622.82.
The post Bitcoin Moves to a 3-Month Low, But Bottom Could Be Reached appeared first on iGaming.org.
Source: igaming
