Bitcoin ‘falls’ to $33,000… “You must prepare for a $30,000 collapse” Experts warn one after another
The price of Bitcoin (BTC) plummeted over the weekend, dropping to $33,000 on the morning of May 9th. Bitcoin price is falling day after day due to the possibility of an additional big step (a 0.5 percentage point increase in the key interest rate) of the US Federal Reserve in the future.
According to CoinMarketCap, a global cryptocurrency market tracking site on May 9, at 1:56 pm, Bitcoin was trading at $33,672.61, down 2.38% from 24 hours ago. Compared to 7 days ago, it is down 13.58%. It is the first time since January 24 that the $34,000 level has collapsed.
The price of Bitcoin has been declining every day since the US Federal Reserve raised interest rates in a big step on May 4 (local time). On the 5th, it rose slightly with the relief of avoiding the ‘giant step (0.75% interest rate hike)’, but since then, it has been dropping by $1,000 every day. Following the $36,000 range on the 6th, the $35,000 range on the 7th, and the $34,000 range on the 8th, it finally entered the $33,000 range on the 9th.
CoinDesk, a media specialized in virtual currency, pointed out that the price of virtual currency has recently fallen sharply due to the possibility of an additional rate hike, and it may continue to decline in the future. Fed Chairman Jerome Powell said in a separate interview after the end of the Federal Open Market Committee (FOMC) on May 4 (local time) that “there is a widespread perception among the committee that a 0.5 percentage point rate hike should be considered at the next two meetings.” told
The US employment indicator released on May 6th was better than expected by the stock market, creating conditions for an additional aggressive rate hike. 428,000 jobs were added, higher than expected by The Wall Street Journal (400,000) and Bloomberg (380,000). As a result, there is a growing possibility that the Fed, which raised concerns about a slowdown in consumption due to interest rate hikes, will implement a more aggressive tightening policy. Analysts say that it is difficult to find a momentum for a rebound in virtual currencies such as Bitcoin.
Experts are predicting further declines in the price of Bitcoin. Carter Braxton Worth, Founder and Chief Technical Analyst at Worth Charting, said that Bitcoin could drop by an additional $30,000. Earlier, Katie Stockton, founder of Fairlead Strategy, an investment advisory firm, also lowered the fair price of Bitcoin from $30,000 to $27,200 after the Fed announced an interest rate hike on May 4.
There is also the prospect of a bigger decline. Jeffrey Heley, chief market analyst for Asia Pacific at OANDA, said, “Technical analysis is coming out that if sentiment on risky assets continues to collapse, the price of Bitcoin will drop to $20,000, following $28,000, in the future.” . Bloomberg also reported a negative outlook, suggesting that “Bitcoin, which failed to meet its key support level, could fall to as low as $20,000 after hitting $28,000.”
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