Lately, bitcoin prices have struggled, often dropping below $43,000 and then failing to make significant gains.
At around 9:20 AM ET, the world’s most popular crypto asset fell to $42,777.20, CoinDesk data shows, on Saturday.
The majority of cryptocurrencies were trading lower early Saturday. The global cryptocurrency market cap fell by nearly 3% to $1.15 trillion in the last 24 hours, while the total crypto market size increased by 9.3% to $89.50 billion.
Bitcoin Short Stay at ~$44K
Bitcoin managed to get back up a bit soon after that, hitting $43,962.01 around 10 AM ET. After this comeback, it fell again, dropping to around $42,840 at 1:30 p.m.
On the other hand, the total volume of the stablecoin reached $74.34 billion, or 83.06% of the total volume of the cryptocurrency market over a 24-hour period.
Bitcoin recently traded at an average price of around $43,500, roughly where it was 24 hours ago and well below the $47,000 barrier it crossed just a few days ago, as investors continue to sway the Fed’s new hawkish enthusiasm and continued evolution. Economic developments resulting from Russia’s attack on Ukraine.
BTC total market cap at $805.46 billion on the weekend chart | Source: TradingView.com
Unease over Fed monetary policy tightening
According to an email from Oanda Senior Market Analyst, Americas Edward Moya:
“Bitcoin is unsure where it will go as Wall Street is concerned about the central bank’s aggressiveness in tightening monetary policy.”
After these recent price fluctuations, many experts have expressed their predictions for the future direction of the cryptocurrency.
Weight Ben McMillan, chief information officer at IDX Digital Assets, points to critical levels of support and opposition.
He noted that “$43,000 is an important near-term support level as Bitcoin attempts to build on its recent relative strength.”
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Cryptocurrency prices deviated somewhat from the performance of the major stock markets, which were marginally positive. The Nasdaq, which is heavily weighted toward the technology sector, gained less than a tenth of a percentage point.
The US central bank aggressively informed over the past week, collectively and through state governors, that it will intensify its efforts to contain inflation, which has reached around 8%, the highest level in four decades.
The correlation between Bitcoin and US stocks has increased in the last 90 days as investors become more risk-averse in response to the Fed’s withdrawal of the pandemic-era intervention attributed to spurring the cryptocurrency’s rally.
Featured image from Research Affiliates, chart from TradingView.com