The Bitcoin (BTC) again dropped below the crucial price level of $30k. Recently, BTC went on to touch the $32K price level. However, experts called it bear fakeout and mentioned not to fall for it. Meanwhile, the pundits have suggested that this bear market condition can continue further.
Fed Rate hikes wallop BTC
Last month proved horrific for the global cryptocurrency market. The world’s largest cryptocurrency’s price dropped by around 30% in May. BTC’s dominance has come down to stand at 46%. Mike Mcglone, senior commodity strategist at Bloomberg Intelligence, informed that Bitcoin is standing at an inflection point. This reflects that the token has come to a point where the curve might change to result in a sloping down or upward position.
He mentioned that Federal Reserve fighting inflation is a primary headwind for the Bitcoin and digital asset market at the start of June. As per reports, the Federal Reserve is looking to maintain the hardening monetary police. Lael Brainard, vice chair of Fed, said that from the data it looks like “market pricing for 50 basis points potentially in June and July”. BTC’s prices are down by over 2% in the last 24 hours.
Brainard added that the Fed will likely raise rates. However, the hike will be less than expected. The US inflation rate is recorded highest in the last 40 years.
BTC might slump more
A crypto expert suggested that this Bitcoin down trend may continue ahead. He pointed out that market may consolidate in this range before dropping down eventually. He proposed the BTC might drop to the range of $22K to $24K price range. However, it will hover around the price support price zone before crashing.
Bitcoin is trading at an average price of $29,700, at the press time. As per Glassnode, around $1.3 billion has been flown out of Bitcoin. However, the net outflow stands at $698 million. Meanwhile, the global crypto market is also down by around 2% over the past day. It stands at $1.23 trillion.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.