BTC Floors To $28,500 As The ‘Hawkish Pause’ Comment Trends

Recent remarks from the Federal Reserve on a “hawkish pause” made the market observe a particular movement, with the S&P, Dow, and Nasdaq all ending on a low note. The Dow was down 0.80%, the Nasdaq fell 0.46%, and the S&P was down 0.70%. The cryptocurrency market saw the most impact, with Bitcoin plunging below $28,500.

In 2023, Bitcoin has already gone through two bouts of sideways trading after rising to $21,000 in January. When the market began to decline recently, it had been trading above $28,000 since it had risen above that level in early March.

According to data provided by TradingView, the report had it that the price of Bitcoin decreased during the trading day, reaching a low of $28,235 before surging to a daily high of $28,915 just before Federal Reserve Chair Jerome Powell’s speech. It swiftly retreated, finding support at $28,500. Since the U.S. economy has been recovering from the pandemic, the Federal Reserve has indicated a change in its monetary policy.

The “Hawkish Pause” Remark By The Federal Reserve Explained 

Recent remarks by Powell suggest that the central bank is looking at a “hawkish pause,” which would entail reducing the rate of asset purchases and possibly hiking interest rates soon. Investors are alarmed by this information since many of them had been counting on the Federal Reserve’s accommodating measures to sustain the market’s expansion.

A potential slowdown in economic activity and a related decline in stock prices could result from the possibility of higher interest rates and tighter monetary policy. In the cryptocurrency market, several reasons, including regulatory crackdowns in China and heightened attention from governments and financial institutions globally, have contributed to Bitcoin’s recent volatility.

Concerns regarding the long-term viability of cryptocurrencies as an investment choice are likely to increase in light of the recent market collapse. Despite these difficulties, many analysts are still positive about the future of Bitcoin and other cryptocurrencies. 

It was gathered that the increasing use of cryptocurrencies by established businesses and investors indicates that they are here to stay. But given the state of the market right now, buying cryptocurrencies requires caution and careful risk management. Like any asset, sizable volatility and losses are possible, especially during market stress.

The Challenges Ahead, Low And High Market Performers 

Even though cryptocurrencies’ long-term prospects are still bright, the current market environment emphasizes caution and careful risk management when investing in these assets. As of the time of this report, the “RSK Infrastructure Framework’ has been named one of the unique tokens that had performed optimally well, with an increase of 14.76%, pushing it to trade at  $0.142.

Other performing tokens are Curve DAO Token (CRV) and Rocket Pool (RPL), which were reported to have gained 5.5% in the last few days. Meanwhile, the biggest losers at the time of writing were Radicle (RAD) and Sui (SUI), which declined by 71%. Analysts who spoke on this development said that Bitcoin had witnessed a lot of activities already in a short time in 2023.

According to the analysis, it surged up to $21,000 five months ago before increasing above $28,000 in the early days of March and has evolved around that price since then. A statement by Eight Global says that the coin was consolidating, an increase in the Open Interest that represents the positioning of several market participants is also arranging themselves, taking advantage of the leverage.

Also, in their statement, they claim that this development has triggered extreme, frequent liquidation. The report Eight Global also claims that Bitcoin still struggles to resist the $30,000/$32,000 price mark. They revealed that there are still sellers already selling at this price level. Meanwhile, the recent remarks made by the Federal Reserve on a “hawkish pause” have caused markets to crash, with the S&P, Dow, and Nasdaq all ending the day in negative territory and Bitcoin dropping to $28,500.

Leave a Reply

Your email address will not be published. Required fields are marked *