The Magazine for Asian Investors
The Bitcoin price has fallen from $35,000 this morning as investors fear that the Federal Reserve’s (Fed) rate hike will pull liquidity out of risky asset markets. This includes the cryptocurrency market.
At 8:15 a.m., the Bitcoin price fell 3.48% to $34,152.2.
Bitcoin plunged after the CME Group’s FedWatch tool indicated that investors now believe 75% of the Fed’s 0.75% rate hike at its June 14-15 meeting is possible, up from 19% last month.
Investors are concerned that the Fed’s rate hike and balance sheet cuts could affect liquidity in risky asset markets, including the cryptocurrency market. This could cause the U.S. economy to enter a recession after contracting by 1.4% in the first quarter of 2002.
Experts say that Bitcoin has broken the important support line at $37,500, signaling a downtrend. It could fall further to test the $30,000 support, which if this level does not hold, will cause Bitcoin to fall further to the $25,000 level.
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Monday, May 9, 2022