Bitcoin Falls Below $44K, Attributed to the Fed Plans to Raise Interest Rate in March
Attributed to the preliminary raise of the interest rate in March, revealed by the U.S. Fed, Bitcoin's price fell below $44,000 and the lowest trading price was as low as $42,413.
Starting in 2022, the leading cryptocurrency Bitcoin has been consolidating between $46,000 and $49,000 ever since.
Just as the U.S. Federal Reserve announced that there is a high probability that it will raise interest rates this year amid greater discomfort with high inflation in March this year. As a safe-haven asset with high inflation, Bitcoin fell below $44,000 immediately after the announcement, and the lowest trading price was as low as $42,413.
The slump triggered a flurry of liquidations, with the BTC market liquidation reaching $222 million in less than an hour, according to data provider Coinglass. More than $293.17M of BTC has been liquidated within 12 hours.
The "Crypto Fear & Greed Index" has dropped to 15, which means the market is highly fearful.
Source: Coinglass
Analyst Michaël van de Poppe said Bitcoin lost support, seeking all the liquidity, maybe a test at $42K range, and that should be it. A longer cycle. Another year of bullish perspectives.
Taking a deeper look at price action last May, he posted the following chart detailing how BTC performed during the last major market correction.
Source: BTC/USDT 4-hour chart
He said that in his Twitter post:
“The scenario of the drop beneath $46K is taking place on Bitcoin here. The question becomes; will we be hanging here taking the liquidity & breaking back above $46K?”
In general, BTC needs to recover $46,000 before returning to the bull market.
Image source: Shutterstock
