The price of Bitcoin (BTC), fell by more than one week on July 26 as investors became anxious about the Federal Reserve raising interest rate.
Bitcoin Slumps
TradingView reported that cryptocurrency leader Bitcoin is trading at below $20,000. This represents a 4.26 percent drop today, and an additional 7.17 percent in the last week.
Accordingly, BTC’s total market value is now $400.13 trillion. This was the market cap for Bitcoin a week earlier, July 18.
Hopes for a long-lasting Bitcoin recovery have been dashed by the dip, which has brought the coin’s trading range back to $19,000 to $22,000.
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It’s interesting to note that cryptocurrency consulting firm Eight Global has a more upbeat outlook for the Federal Open Market Committee (FOMC) meeting on July 27. Website stated that cryptocurrency can benefit from the Federal Funds Rate (FedEx) because:
“Crypto is correlated to the stock market, and the stock market is impacted by the federal funds rate. Rising rates hurt the performance of stocks while lowering rates make stocks more interesting as investment.”
Eight Global predicts a major increase of 75 basis points. However, the market already has this factored in.
Here’s what to expect for tomorrow
A 75 bps rise is what the majority of people expect and it is the most probable outcome. Stocks and crypto will be either neutralized or bullish if there is a 75 bps rise. This has already been priced into the market in recent weeks. pic.twitter.com/MH3Hx8oQ9k
— Eight (@eight_global) July 26, 2022
BTC/USD trades starting at $22k TradingView
Michal van der Poppe, a cryptocurrency trading expert, has seen the market correct. stated that he is “looking at a $20.5K-20.7K area to hold for Bitcoin going into FOMC tomorrow.”
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Featured Image from Shutterstock. Charts from TradingView.com
