While the Federal Reserve disclosed another possible interest rate hike, one of the well-known analysis houses presented its study on Bitcoin (BTC).
The Glassnode firm in their latest newsletter Jan Happel and Yann Allemann, their co-founders, think Bitcoin’s price trend below $20,000 is all due to the immense pressure that another 75 basis point rate hike is facing.
The founders claim that developments around the crypto space are being dominated by the Federal Reserve’s tough financial measures. They also believe that this has pushed Bitcoin’s bearish price trend towards a bearish cycle.
On the other hand, as the crypto space faces massive bear moves, Happel and Alleman claim that Bitcoin’s volume is increasing and this action amid the bear market will increase the risk of further bear moves
Bitcoin price below $25,000
The founders go on to claim that the futures-to-spot volume ratio, already below zero, was dragged down even further by 50 basis points due to the June rate hike. They also say that as interest rates rise, investors and traders are losing confidence and speculating on the future of the crypto space.
Before concluding their analysis, the duo claim that Bitcoin will trade between $17,000 and $25,000 due to the recent 75 basis point rate hike and further rate hikes, according to Fed Chairman J.Powell. The founders also claim that despite the spot market’s positive sentiment on volume traded, the options and futures markets are pointing to more selling pressure.
At the time of writing, Bitcoin is selling at $18,823, down 1.46% over the past 24 hours.
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