Bitcoin ‘gives back gains’ after Fed comments ‘add downside risks’ to crypto markets

A close up of a bird Bitcoin

Bitcoin ‘gives back gains’ after Fed comments ‘add downside risks’ to crypto markets

Analysts foresee prolonged weakness in BTC and altcoins following hawkish comments from the Federal Reserve.

Bitcoin ‘gives back gains’ after Fed comments ‘add downside risks’ to crypto markets

Bitcoin (BTC) price continues to flash mixed signals, raising uncertainty among investors and negatively impacting asset prices across the market.

Data from Cointelegraph Markets Pro and TradingView shows BTC price pinned below $36,000 and even though crypto and equities markets underwent a brief relief rally on Jan. 26, comments from the recent FOMC meeting appear to be settling in as investors internalize the fact that interest rate hikes are on the way.

Bitcoin ‘gives back gains’ after Fed comments ‘add downside risks’ to crypto markets

BTC/USDT 1-day chart. Source: TradingView

Here’s a look at what analysts and traders are saying about Bitcoin’s most recent price action and the macroeconomic factors impacting the wider crypto market.

A year of “range bound” trading

The long-term range-bound trading that BTC has been in since early 2021 was addressed by Mike McGlone, senior commodity strategist for Bloomberg Intelligence, who posted the following chart and asked, “What ends Bitcoin, Ethereum range trade?

BTC/USD 1-week chart. Source: Twitter

According to McGlone, the key to escaping the current range are the “bullish fundamentals” that back the underlying strength of Bitcoin.

McGlone said,

The overall cryptocurrency market cap now stands at $1.663 trillion and Bitcoin’s dominance rate is 41.5%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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