Sales in crypto assets were evaporated by the publication of the minutes of the US Federal Reserve (FED). The world’s most powerful central bank signaled a faster-than-expected tightening of its monetary policy, so markets have started to discount a 90% chance of a rate hike as early as March.
Likewise, the political conflict in Kazakhstan added selling pressure to Bitcoin last week, as internet outages and power supply problems have created chaos in the market. After the prohibition problems in China, the miners moved to the Central Asian country, thus becoming the second country in the world to mine cryptocurrencies, behind the United States, representing today just over 15% in production of Bitcoin.
In the big picture, “It seems likely that all-time highs for Bitcoin and Ethereum will be capped for most of 2022 as a result of central bank tightening.“, says the firm QCP Capital on its Telegram channel.
Added to this on Friday were data from the US employment report, which pointed to a strong wage increase, something that “will only give them more reasons to act to curb the pace of inflation,” said Craig Erlam, an analyst at Oanda. . “If loose monetary policy has been one of the main catalysts for the bitcoin boom in the past two years, then cryptocurrencies are in for a tough 2022 as central banks, including the Fed, are in tightening mode.” stated the expert.
At the moment, the technical analysis indicates that the weekly close below $ 42,000 sends a negative signal, but “I think that the $ 40,500-$ 39,500 dollars are the true levels to watch,” he explained. Jeffrey Halley, an analyst at Oanda. “I think the selling has gone too far too quickly. The relative strength indicator (RSI) has moved into oversold territory, suggesting that bitcoin could rally from here. I don’t see any reason why I can’t get the $ 45,000 back in the short term“, concluded the expert.
Source From: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
