Bitcoin price shows no signs of a directional bias as it hovers around $66,000. The 2019 BTC price fractal hints at a potential correction should the US Fed cut interest rates. Investors can expect a retest of the $60,000 to $45,000 levels depending on the severity of the nosedive. So, let’s focus on the cryptocurrency market’s lack of directional bias. From a big-picture perspective, the reason for this uncertainty could be attributed to the US Federal Reserve or the macroeconomic landscape.
However, the Fed decided to cut interest rates in February 2020 close to zero in order to cushion the effects of the marketwide nosedive due to the COVID-19 pandemic. BTC/USD 1-day vs Fed Funds Rate chart Interestingly, the crypto markets were the first to crash and began their descent after the Fed started cutting the interest rates in July 2019. It makes sense that BTC formed a local top in 2019 and crashed as investors would choose to offload the riskiest assets first.
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Source: Investingcom - 🏆 450. / 53 Read more »
Source: Investingcom - 🏆 450. / 53 Read more »