Monday was a good day for Bitcoin, even though it started the day down. When bitcoin fell to $32,982.11 on Monday, it was its lowest point since July. By afternoon, the largest cryptocurrency by market cap was up 5.6 percent to $37,183.25, as broader equities rose. Russia’s central bank said last week that they may stop people from using and mining cryptocurrencies. Luno’s vice president of corporate development and international expansion says that bitcoin is likely to hit the $30,000-$32,000 range based on the current market sentiment.
If the cryptocurrency stays above $30,000 for more than a week, there could be a base there before the market moves up, he said. As a result, it could be a while before the market starts to move in the right direction. In a note Monday, he said that “A 78% decline from the bitcoin high of nearly $69,000 would imply a potential downside figure of about $15,000,”.
Bitcoin supporters have long said that the digital coin is a good way to protect against inflation.
Many new investors haven’t been able to believe that. Since last year, there have been a lot more short-term investors in the crypto market who treat bitcoin like a tech stock than there have been before. The crypto market could lose some of its speed if the Fed gets more aggressive with the interest rate increases. Valkyrie Funds CEO Leah Wald is worried about how the stock market will react to this week’s Fed meeting, especially after having their worst week since the global emergence of Covid.
Traders would be more willing to take on more risk assets, like bitcoin, if stocks fell, because digital assets have become more and more linked to stocks as more companies add bitcoin to their balance sheets. It’s likely that bitcoin will be volatile for at least the short term, as traders figure out how the market will feel after this week’s Fed meeting.
