Bitcoin fell below the $48,000 mark, down 2.23% in the last 24 hours, while Ether stood its ground at $3,980. The world’s most popular cryptocurrency, though volatile, continues to hold support above $46,000. Analysts expect a brief bounce toward $55,000. But presently, it remains at $47,000.
This fall was expected as the US. Federal Reserve held the most hawkish edge of market expectations on Wednesday. The Feds brought a monetary easing policy and approved plans to withdraw the pandemic stimulus. The cryptocurrency market may see more decline in bitcoin price as central banks tackle high inflation.
Alex Kuptsikevich, senior market analyst, at Fxpro, told Bitcoin.com that the Fed chairman called financial asset valuations elevated. “This is a clear signal of a willingness to hurt the markets.” The analyst said the feeling is that the markets have prepared for risk-on. “It expects softness from the Fed, and has not backed down despite the Fed’s rhetoric.”
Kuptsikevich noted that the rise in ‘growth’ stocks speaks more about the market mood to end a strong year on a cheerful note. However, the global crypto market cap has gained more than 3% to the $2.37 trillion mark. This is compared to the last day. The total crypto market volume rallied more than 25% to $131 trillion.
Edward Moya, a senior market analyst at OANDA, wrote in his newsletter that the crypto space is seeing a lot of repositioning. That is leading to some unwanted selling pressure. But the medium- and -long-term outlooks remain firmly in place. Moya believes bitcoin and big tech are being punished as investors reallocate some of their more profitable risky bets.