Even though the cryptocurrency executive order bolstered the cryptocurrency market, there are still fears about rising inflation. All eyes will be on the impending rise in inflation in the US, which is projected to be exacerbated by the current geopolitical scenario.
Historically, the Federal Reserve (Fed) has had the biggest impact on crypto markets, while the European Central Bank’s (ECB) rate choices have had little to no impact. Thursday’s statement, according to one observer, is crucial.
Bitcoin has broken above $40,000 twice in the last month, but has not been able to hold this level for long. The US Federal Reserve may raise interest rates faster than expected on rising inflation data, so volatility is likely to endure.
Will the price of Bitcoin fall soon?
An experienced trader who emerged on the crypto scene after correctly predicting Bitcoin’s 2018 crash is revisiting his thoughts on the leading cryptocurrency. After a significant bounce from $38,000 to above the $42,000 level, Peter Brandt feels that BTC is developing an attractive pattern.
The investor informs his Twitter followers that the leading digital asset by market cap is showing an “interesting” technical setup. BTC price has now risen above an all-time support and resistance level around $41,757, while also hitting a higher low after bottoming at $33,500, according to his analysis.
BTC is the king of digital assets, according to the leading expert, and traders who choose to diversify their BTC holdings into other crypto assets may regret it in the future.
With that in mind, Brandt says he is not a fan of “HODLing” Bitcoin due to the dramatic drawdowns, which can force traders to wait a long time for their holdings to become profitable.
“I am NOT a fan of holding Bitcoin. Bitcoin has a history of falling 80%, 4 in 11 years. A hodler needs 400% each time to get back to all-time highs. I hate having to earn the same money over and over again. Quite difficult the first time.
As global markets continue to deal with the economic fallout from the Russian-Ukrainian conflict, BTC has shown a significant degree of price volatility this week.