Bitcoin inches down ahead of Fed’s rate hikes

Bitcoin inches down ahead of Fed’s rate hikes

A real-time price chart for Bitcoin between July 23 and 24 / Screenshot from CoinMarketCap

By Lee Min-hyung

Bitcoin posted a small loss this week ahead of a significant rate hike of 75 basis points by the Federal Reserve Board. Investors remain cautious about concerns about the aftermath of restrictive movements.

U.S. Fed Chair Jerome Powell / AP-Yonhap

The price of Bitcoin has dropped by more than 1% as of 2:00 pm. Sunday from the previous day. The world’s largest cryptocurrency traded at around $ 22,700, with no clear signs of recovery.

Ethereum also lost the ground. Two major cryptocurrencies were captured in containment after a sharp drop in prices since May due to a freeze in market sentiment caused by the Fed’s rate hikes.

The performance slump was due to increased financial uncertainty as the Federal Open Market Committee meeting on July 26-27 approached. The US Treasury is widely predicted to raise interest rates again by 0.75 percentage points to curb rising inflation.

This possibility puts a lot of pressure on crypto investors as major cryptocurrencies such as Bitcoin and Ethereum continue to show low price patterns.

This move was in sync with the sharp fall in the US stock index. The S & P 500 fell 0.93% on Friday. Nasdak also fell 1.87 percent over the same period.

The global crypto market as a whole is expected to remain bearish in the short term due to the aggressive monetary policy of the world’s largest economy.

Nonetheless, market participants are optimistic about the potential recovery of major cryptocurrencies.
“Bitcoin prices may be further adjusted in the face of ongoing monetary tightening, but may recover towards the end of the year as the end of the monetary tightening cycle is expected.” And read what the Bithumb report recently published. The research center said.

 

Credit/Source : KoreaTimes

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