Bitcoin has slipped off the crucial $19,000, losing 2.53% of its value in the last 24 hours. Ethereum is also struggling at the $1,300 level. The second most popular cryptocurrency is down by 17.49% since last week’s Merge. It has fallen about 18% over the past four days, and more than 32% since reachinga pre-Merge euphoric high of over $2,000 in August.
Edward Moya, a senior market analyst for Oanda, said Bitcoin is lower as risk aversion runs wild as rates continue to surge. He believes this week’s central bank decision is fireworks, which could help fuel any sell-offs to retest the Bitcoin summer lows. Moya said peak pessimism is almost here for crypto, which is needed before longer-term money piles back in.
The analyst outlined that central banks globally have been wrestling with the same problem. Some have raised their interest rates in recent weeks, with Sweden’s Riksbank becoming the latest to boost its rate by 1% – the largest increase in nearly two decades. Moya said Riksbank is setting the momentum for this week. He added that expectations should grow for more central banks erring on the side of being more aggressive with fighting inflation.
Jonny Moe, an independent market analyst, says BTC’s ongoing price action is similar to its sideways consolidation moves at the beginning of this year. This means the popular cryptocurrency’s price rebounds around the $20,000 mark do not make a long-term bull case. Rudy Takala, an analyst, warned crypto traders to prepare for more dark times because of the worsening economic conditions globally.
However, some analysts and crypto enthusiasts believe Bitcoin is staring at a strong bullish reversal in the times ahead. The CEO of XOR Strategy Aurelien Ohayon anticipates BTC to reach $45,000 by early 2023.