The price of bitcoin it fell below $ 44.000 shortly after minutes from the Federal Reserve's December FOMC meeting reconfirmed budget adjustment efforts.
After minutes of the Federal Reserve's December FOMC meeting revealed that the regulator is committed to reducing its balance sheet and ad raise interest rates in 2022, Bitcoin (BTC) is the broader market for cryptocurrency have dropped strongly, while equity markets took their breath away from the close.
In detail, the price of BTC dropped to $ 43.000 as the equity markets corrected, triggering a series of liquidations that burned $ 222 million in capitalization in less than an hour.
According to TradingView data, Bitcoin was hit by a sell-off that pushed the price to an intraday low of $ 43.717 after bouncing around support near $ 46.000 for a few days. But why?
In the past few hours, it has become increasingly clear that the Fed will start raising its benchmark interest rate in March, with the budget cut therefore likely to begin before the summer.
Now, analysts say they are convinced that if the price of BTC fails to return above $ 46.000, the market could bear sustained bearishness, with BTC that could retrace to the $ 30.000 region.
The Securities and Exchange US Commission (SEC) postponed its decision on NYDIG's spot bitcoin exchange-traded fund (ETF) by 60 days on Tuesday. The delay led to negative sentiment in the cryptocurrency markets, with several tokens experiencing a quick sell-off following the announcement.