BigONE View: The Federal Reserve Raises Interest Rates, Bitcoin Falls in Response
With the help of Elon Musk and other bigwigs, Bitcoin rose on June 16 and returned to the $40,000 mark. Investors' confidence in another currency circle has increased greatly, and many people are looking forward to the arrival of the bull market. Dream of Bitcoin breaking through the $42,000 mark.
But contrary to expectations, this wave of Bitcoin’s rising market was beaten back to its original price by the Federal Reserve just like over one night. BigONE believes that it is very irresponsible to use personal power to stir public opinion to achieve profit in the face of national interests. After the FR pushed forward its plan to raise interest rates twice in 2023, Bitcoin has fallen to close to key support levels, and Bitcoin prices have expanded their decline.
After falling below 40,000 US dollars and continuing to fall, after hitting an intraday low of 38,300 US dollars, the momentum weakened in the early trading hours. The reason that prompted the FR to make this decision is that some economists are worried about rising inflation in the United States, and the FR has raised its inflation forecast from 2.4% to 3.4%. Although the FR believes that the current inflation rate is only “temporary”, overall consumer prices in the United States are at their highest level in 13 years. Many analysts worry that rising inflation will affect the United States’ economic recovery after the epidemic.
Will Bitcoin prices continue to fall? Can the current price range be maintained?
From BigONE’s point of view:
On June 15th, the price of Bitcoin was successfully surging but failed to reach the target of $42,000 after hitting the resistance level of $41,000. Although the current price of Bitcoin has fallen below $40,000, BigONE believes that the current price trend is just a small oscillating interval trading. Although the price of Bitcoin has been pushed back below $40,000 for various reasons, some analysts believe that Bitcoin will remain range-bound and will remain bullish until it breaks through the $42,000 level. Many investors also expect Bitcoin to resume its bull market soon and rebound above $40,000. Still, BigONE’s technical analysts are very worried about the impending death cross because it may bring the price of Bitcoin down to $30,000. BigONE will continue to pay attention to the future market trend and bring you more industry analysis articles. BigONE reminds investors to take a rational view of the rise and fall of the market and do not invest blindly.
About BigONE
BigONE is a global cryptocurrency exchange that provides a platform for trading various cryptocurrencies. It was founded in 2017 and registered in the Netherlands. The group operates in Russia, Brazil, Vietnam, Seychelles, Singapore, Japan, and Indonesia, providing marketing, investment, and blockchain technology research & development.
