Bitcoin (BTC) extremely close to falling to $16,000

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Arman Shirinyan

Bitcoin is about to fall into an unpleasant range

The Bitcoin performance we saw two days ago is dramatically different from what we see in the market today. The price of the first cryptocurrency fell below the $17,000 mark after the FED announced another 50 basis point rate hike which, for some reason, was seen as a positive before the conference release of Jerome Powell.

Over the past few hours, Bitcoin has once again reached the $17,000 price threshold, despite rallying to near $18,500 a few days ago. Such price performance was a reaction to an upcoming 50 basis point hike, following a series of 75 basis point hikes.

Source: Trading View

Despite the slowdown in the rate hike cycle, the FED is still enforcing a strict monetary policy which can in no way be favorable to assets like Bitcoin or cryptocurrencies in general. The positive market reaction to the Fed’s next move has been irrational, despite the drop in inflation.

Even without the FUD around Binance, the digital asset market has been plagued with massive outflows and almost non-existent inflows into the industry from retail and institutional investors.

The price of digital gold has been moving within the same trading range for the past two months, which is a critical factor for highly volatile and speculative assets like Bitcoin that attract a large chunk of trading volume as a tool exposure to volatility.

Unfortunately, the near-term future for the cryptocurrency market looks bleak, and markets are struggling to find ground to bounce back from, given the lack of drivers that would entice investors to further fund the industry, especially especially after the FTX implosion.

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