For the past week, crypto prices have been depressed, with Bitcoin taking the biggest hit by staying below $30,000. In the past 24 hours, its price has stumbled down to almost $29,000, with inflation and likely Fed rate hikes being the reason. That’s what investors are waiting for and it is likely to resume when the Fed’s next report is out. On the positive side, Bitcoin’s lower price isn’t keeping the crypto market down, with Doge racing to a 7% increase probably because of Twitter’s expected rebrand.
Not long ago, Bitcoin raced past the $30,000 point due to BlackRock applying for an EFT. But, ever since that, its price has been stuck in the $29,000 range, and the Fed’s to blame.
What Happens Next?
US’ Federal Reserve is expected to announce a new rate hike today which will most likely be the biggest so far. If the expected 25-point increase is announced, experts believe it could drop Bitcoin’s price even lower. These rate concerns and inflation have been keeping crypto prices down while also affecting the US dollar value.
On Monday, Bitcoin tumbled down to its lowest point since June. This was likely fueled by reports that Binance’s CEO Changpeng CZ Zhao has suggested that the crypto exchange giant conducted wash trading years ago. China’s lawmakers warned of a troubling economic recovery too, and those were the factors that kept Bitcoin’s price down.
The main problem is that Monday’s price drop was sharp which suggests a programmatic sale. In general, these sharp drops recover quickly. However, Bitcoin has been stuck in sub-$30,000 levels, meaning that buyers are cautious about their next steps. Everyone is holding breath about the Fed’s decision and we’ll see how things proceed from there.
On the positive side, Doge was up by 7%. It spiked above $0.08 which is the highest price point for Elon Musk’s favorite cryptocurrency since April this year. The likely reason for Doge’s rise is Twitter’s rebrand as X, a bold move by Elon Musk that will either save or destroy the platform. Nevertheless, good thing are coming for Doge besides the price, as there are rumors that X might implement Doge payments.
Sentiment Analysis
Right now, the sentiment around Bitcoin’s price is that it can’t go over $30,000 soon. Funding rates indicate that the price drop might be to the futures market sentiment. This metric determines whether short or long traders are dominant. Positive values indicate a bullish sentiment, while negative values indicate otherwise. At the moment, the sentiment is bearish after a couple of optimistic months. The pressure from the futures trading market is affecting Bitcoin’s price, and there seems to be no solution in sight.
If the charts are right, Bitcoin could race to $38,000 in the coming months. So far, it has been shooting above $30,000 then dropping below it, and if this level holds, a price increase is coming sooner rather than later. That’s only if there aren’t any stumbles along the way like record Fed hike rates which might ruin it all.