Bitcoin it appears to have taken a sharp drop as the price falls below $36,000, bringing the entire market to its side. Now may not be the ideal time to scroll through your phone and take a look at your portfolio. The entire market seems to be running a blood marathon.
The bitcoin price fell more than 9% and dropped to $35,856. The entire market, cryptocurrencies and the global stock market seem to have taken a toll on skyrocketing inflation and the decision of the US Federal Reserve. The Fed decided to raise interest rates by 0.5%, and nothing else seems to be the reason for this bloodshed apart from the Fed’s monetary policy and the inflation crisis.
Will Bitcoin hold up?
Bitcoin has been hovering around $36,000 and $42,000. All credit can be given for high market volatility, rising inflation and the Fed’s monetary policies. This interest rate hike is the highest the country has seen in two decades.
The Fed’s decision to raise rates is to deal with runaway inflation that topped 8.5% in March.
The crypto market has been very much behind the stock market, which explains the global adoption and price drop. ethereum started following and has fallen over 7.5% to trade at $2,732. Bitcoin failed to see sunlight above $50,000 since December 25.
Bitcoin lost more than 47% of its value since its all-time high on November 10, 2021. The pandemic, rising inflation, and FED actions have all contributed to the price drop. Despite BTC struggling to show signs of a major recovery, pundits still believe that Bitcoin will cross the $100,000 threshold.
For the faint-hearted investors, bloodshed is expected in the market, and each drop will help them come back stronger. Therefore, big dips and short swings should be fully expected. If you are in for the long haul, stand firm and be prepared.
“Volatility is as old as the hills and it’s not going anywhere. It’s something you have to deal with.”
Bill Noble, Chief Technical Analyst at Token Metrics
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