On July 26, the price of Bitcoin (BTC) plunged to a level not seen in over a week as investors grew anxious in anticipation of the Federal Reserve’s rate hike.
According to TradingView, the leading cryptocurrency is currently trading below $21,000 at $20.955, down 4.26 percent today and another 7.17 percent over the past week.
As a result, the total market capitalization of the digital asset is currently $400.13 billion. Over a week ago, on July 18, BTC had a market cap of that amount.
Hopes for Bitcoin’s long-term recovery were dashed by the drop, bringing the coin’s trading range back from $19,000 to $22,000.
Related reading | On-chain data: Bitcoin whales grow at 10k + BTC
It is interesting to note that cryptocurrency advisory firm Eight Global has a more bullish view of the FOMC meeting on July 27. The site stated that the fed funds rate is important for cryptocurrency for the following reasons:
Cryptocurrencies are linked to the stock market, and the stock market is affected by the fed funds rate. Higher prices hurt stock performance while lower rates make stocks more interesting as an investment.”
The most likely outcome, according to Eight Global, is a 75 basis point increase, although the market has already taken this into account.
What do you expect tomorrow:
A majority expects a 75 basis point increase which is the most likely outcome. A 75 basis point lift would either have a neutral or bullish outcome for stocks and cryptocurrencies, as this has been priced in over the past weeks. pic.twitter.com/MH3Hx8oQ9k
– eight (eight_global) 26 July 2022
BTC/USD trades at $22k. Source: TradingView
As the Markets Correct, Cryptocurrency Trading Expert Michal Van de Poppe advertiser It is “looking into the $20.5K-$20.7K region to hold against bitcoin entering the FOMC tomorrow.”
Featured image from Shutterstock, charts from TradingView.com