Cryptocurrencies and other cryptocurrencies were falling on Thursday, finally making significant moves after weeks of inaction as traders sold the digital asset on expectations that interest rates will remain higher for longer than previously thought.
Bitcoin price fell by 2% over the past 24 hours to $28,500. It is a volatile business characteristic of the largest cryptocurrency that has been largely absent in recent months as bitcoin has fallen between $29,000 and $30,000 in a lull of historically low volatility.
Now comes the real test of resilience — and nerve — as Bitcoin drops to the bottom of its nearly two-month trading range,” said Anthony Trenchev, co-founder and managing partner at cryptocurrency lender Nexo.
Like the stock market, where
Dow Jones Industrial Average
Standard & Poor’s 500
Featuring two days of significant declines, Bitcoin is moving on the back of economic data and the latest meeting minutes from the Federal Reserve’s Monetary Policy Committee.
US economic data released this week — from retail sales, industrial production, and other metrics — bolstered the narrative of a strong economy, with an upgrade to expectations for third-quarter GDP growth. In addition, the minutes released Wednesday of the Fed’s June policy decision underlined the continued commitment to lower inflation at higher rates.
A strong economy gives the Fed little incentive to cut rates from generational highs, and investors also increasingly expect more rate hikes from current levels. Rising prices since March 2022 have been a major force on risk-sensitive assets like stocks and bitcoin, so the latest news is bad for cryptocurrencies.
How low can Bitcoin go now that it’s back in action?
A drop below $28,800 confirmed the local dominance of bears. Alex Kuptsikevich, an analyst at brokerage firm FxPro, said that the next major support points are now in the next round level of $28,000 and then in the $27,200 region, where the 200-day moving average and uptrend support from last November are concentrated.
– the second largest cryptocurrency – down 2% to $1,790. Small tokens, or altcoins, also fell along with both
The slip is about 1%. Memecoins was weaker, however
down 3% and
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