The biggest cryptocurrency has eased back below $44,000. How long will this decline continue? We have compiled the evaluations of the experts regarding the current price view and the details that caused the price decrease for you. If you want to suffer less from volatility, you should not skip these details.
Why Is Bitcoin (BTC) Falling?
Bitcoin (BTC) plunged with the Wall Street opening on February 16 as markets held their breath on comments from the US Federal Reserve. Will Bitcoin, which has loosened up to $ 43,300 during the day, be able to protect this region? The pair managed to hit $44,500 overnight, with gains eroded as investors await hints from the Fed on inflation, shrinking asset purchases and a crucial rate hike plan.
With Bitcoin and altcoins highly correlated with stocks, developments that are negative for traditional markets are also affecting cryptocurrencies. The FOMC minutes announced at 22:00 will be decisive for Bitcoin.
What Are Cryptocurrency Experts Falling?
Commenting on the event, Gina Martin Adams, chief stock strategist at Bloomberg Intelligence, argued that the lowering of the Fed’s balance sheet, which is currently about $9 trillion, could lead to a worse fall for stocks than a rate hike.
“I’m still more worried about the balance sheet than rate hikes. Since 2010, changes in the balance sheet have been the reason for about a third of the movement in the market”.
Crypto Chase, on the other hand, said;
“I still think the price could go higher. But a short-term pullback and/or cut will happen sooner or later before major resistances are broken.”
Behind the latest statements, Rekt Capital believes that the rise will continue, even if the weekly close does not come as expected.
Material Indicators point to a larger volume support zone just under $42,000. If the price is to withdraw in the evening, it may receive a reaction from this region. Of course, cryptocurrency markets are not clearly predictable, and Bitcoin may move in double-digit percentages, contrary to expectations.