While the Federal Reserve disclosed another possible interest rate hike, one of the well-known analytic firms has come up with its study on Bitcoin (BTC).
Firm, Glassnode in its latest newsletter Jan Happel and Yann Allemann, its co-founders are of the opinion that Bitcoin’s price trend below $20,000 is all due to immense pressure faced by another interest rate hike of 75bps.
The founders claim that the developments surrounding the crypto space are being dominated by the Federal reserve’s strict financial measures. They also feel that this has led Bitcoin’s decreasing price trend towards a bearish cycle.
On the other hand, as the crypto space faces massive bear movements, Happel and Alleman claim that there is an increase in Bitcoin’s volume and this action amidst the bear market will increase the risk of more bear action
Bitcoin Price Below $25k
The founders further claim that the futures-to-spot volume ratio which is already below zero has been pulled down even more due to June’s interest rate hike of 50bps. They also say that with rising interest rate hikes, investors and traders are losing confidence and speculating about the future of the crypto space.
Before they conclude their analysis, the duo claim that as per J.Powell, Fed chair, Bitcoin will trade between $17,000 and $25,000 area due to the latest 75bps interest rate hike and further hikes. The founders also assert that despite the spot market’s positive approach towards traded volume, the options and futures markets are pointing towards more selling pressure.
At the time of reporting, Bitcoin is selling at $18,823 with a fall of 1.46% over the last 24hrs.