What does Bitcoin offer now that prices are struggling to recover $43,000?
Recently, bitcoin prices have struggled, often diving below $43,000 and then failing to make substantial gains.
At around 9:20 a.m. EDT, the world’s most popular crypto asset retreated to $42,777.20, data from CoinDesk showed Saturday.
Most cryptocurrencies traded lower early Saturday. Global crypto market capitalization fell nearly 3% to $1.15 trillion in the past 24 hours, while total crypto market volume increased 9.3 percent to $89.50 billion.
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Bitcoin short stay at almost $44K
Bitcoin was able to retreat slightly shortly after, reaching $43,962.01 at about 10 a.m. EDT. After this comeback, it retreated again, dropping to about $42,840 at 1:30 p.m.
On the other hand, the total volume of stablecoins was $74.34 billion, or 83.06% of the total 24-hour volume of the cryptocurrency market.
Bitcoin recently traded at an average price of about $43,500, roughly where it was 24 hours ago and well below the $47,000 barrier it crossed just a few days earlier as investors continued to weigh in on the new aggressive zeal of the Federal Reserve and the continued turn of economic developments as a result of the Russian attack on Ukraine.
BTC total market cap at $805.46 billion on the weekend chart | Source: TradingView.com
Concerns over Fed tightening monetary policy
According to an email from Oanda Senior Market Analyst Americas Edward Moya:
“Bitcoin is unsure of its direction as Wall Street is concerned about the central bank’s aggressiveness in tightening monetary policy.”
Following these recent price swings, several experts have made their predictions for the future direction of the cryptocurrency.
Ben McMillan, chief information officer at IDX Digital Assets, weighed in and indicated critical levels of support and opposition.
“$43k is a critical support level in the near term as bitcoin tries to build on its recent relative strength,” he noted.
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Cryptocurrency prices diverged slightly from the performance of major equity markets, which were marginally positive. The Nasdaq, which is heavily tech-focused, gained less than a tenth of a percentage point.
The US Federal Reserve has made strong communications over the past week, both collectively and through individual governors, that it will step up its efforts to contain inflation, which has reached about 8%, a four-decade high.
The correlation coefficient between Bitcoin and US stocks has increased over the past 90 days as investors have become more risk averse in response to the Federal Reserve’s withdrawal from pandemic-era intervention attributed to catalyzing the rise of cryptocurrency.
Featured image of Research Affiliates, chart of TradingView.com