Bitcoin Price Tumbles as Fed Rate Hike Looms, But Asian Company Makes Bullish Bet

Bitcoin (BTC) is facing renewed selling pressure as investors brace for a potential Federal Reserve interest rate hike this week. The price has dipped below $68,500, raising concerns of further losses.

Fed Rate Hike Clouds Bitcoin’s Future

Analysts anticipate the Fed to maintain a hawkish stance, keeping interest rates higher for longer than expected. This could dampen the appeal of riskier assets like Bitcoin.

After 19 consecutive days of inflows, Bitcoin ETFs witnessed their first outflow on Monday, signifying a shift in investor sentiment. Bitcoin is currently experiencing a rare miner capitulation event, potentially leading to short-term price weakness before a rebound.

BTC/USD Technical Analysis Hints at Downturn

Bitcoin’s recent fall below the crucial $68,500 support level and the 100-hour moving average suggests a bearish trend.

• Resistance levels: A clear break above $69,500 is needed for a price surge, but a key bearish trend line stands in the way.
• Technical indicators: Both the MACD (Moving Average Convergence Divergence) and RSI (Relative Strength Index) are flashing bearish signals.

Metaplanet Makes Million-Dollar Bitcoin Purchase

Metaplanet, a company dubbed “Asia’s MicroStrategy,” has boosted investor confidence with its third Bitcoin purchase in seven weeks. Metaplanet’s stock price jumped 10.8% following the news, reflecting investor approval of their Bitcoin strategy. Similar to MicroStrategy, Metaplanet is using Bitcoin as a hedge against inflation and currency depreciation.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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