Bitcoin News, Market Analysis

Bitcoin Struggling To Retain $48k Due To Extreme Market Fear.

On December 17, Bitcoin (BTC) drew clues from the United States Federal Reserve as markets awaited policy announcements.

BTC’s higher lows are still secure

As Wall Street began on December 15, information from CoinMarketCap and TradingView indicated BTC/USD remains in a trend around $48,000.

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BTC/USD 1 DAY PRICE CHART; SOURCE – COINMARKETCAP.COM

The pair had reached a high of $49,343 on Bitstamp overnight, but it has majorly lost of its recent major gains for the day at the time of writing, ahead of a major Fed meeting.

The Federal Open Market Committee (FOMC) would be discussing Eastern Time to discuss interest rates, inflation, and asset purchase tapering.

Analysts are leaning toward a hawkish position, which may cause discomfort for risk asset investors in the short term if the Fed’s strategy becomes less liberal.

Conventional markets were also lackluster, with the S&P 500 down 0.22 percent on the day.

According to CoinMarketCap, with Bitcoin underperforming relative to what others expected Q4 2021 to seem as, there is growing consensus that 2022 will be the market cycle top for both BTC and altcoins.

Fear pervades the environment

The tone in cryptocurrency markets was more noticeable, with a bias to the downward.

Solana (SOL) presently at 5th position, records the highest gains for the day with over 10% price increase for the day.

Dogecoin’s (DOGE) price from its Tesla notoriety, was able to acquire over some of its 25% gain, recorded earlier this month.

“Right now, individuals are simply selling their bags because they are confident that a massive drop will occur tonight,” Cointelegraph writer Michael van de Poppe claimed.

The Crypto Fear & Greed Index was at 32/100, up from 28/100 on Friday, indicating a shift from “severe fear” to “fear” inside its own range, reflecting Bitcoin’s latest movements.

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