Bitcoin Price Drops to $43.7K
Bitcoin (BTC) fell below $44,000 shortly after notes from the Federal Reserve’s December FOMC meeting re-confirmed plans to control the balance sheet. BTC and the broader cryptocurrency market fell as equities markets retreated after minutes from the Federal Reserve’s December FOMC meeting. There revealed that the regulator is committed to shrinking its balance sheet and raising interest rates in 2022.
As stock markets corrected, the price of bitcoin fell below $44,000. Therefore, it triggered a wave of liquidations that totaled $222 million in less than an hour. Bitcoin experienced a wave of selling that pushed the price to an intraday low of $43,717 after oscillating around support at $46,000 for a couple of days. Based on the current situation, the Fed expected to begin raising its key interest rate in March, which would imply that balance sheet reduction could start before summer.
Here’s what crypto analysts are saying about the latest Bitcoin price drop in BTC and what could be in store in the coming weeks as the Fed’s easy money policies end and interest rates begin to rise. Rekt Capital, a crypto analyst and pseudonymous Twitter user foreshadowed the Jan. 5 pullback by posting the chart below, highlighting the many similarities between this BTC range and May 2021.
BTC Reclaim $46,000
Michael van de Poppe, an analyst, and Cointelegraph contributor provided a more in-depth look at the price action in May. Suppose the price does not break back above $46,000. In that case, the market may be in for a prolonged bear period. Hence, BTC might potentially retrace to the low $30,000 range.