After the Federal Reserve Bank of the United States made hawkish comments, the flagship crypto-backed fell below $40K.
Powell said Thursday that the Federal Reserve will consider raising the benchmark interest rate by 50 basis points (0.5 percentage points) at the next Federal Open Market Committee meeting.
Meeting of the Federal Open Market Committee (FOMC) is expected to hold in May. Speculative assets such as stocks and crypto assets have been hit by tighter monetary policy this year.
Price action
When it came to Bitcoin, traders were generally also waiting and watching. The most valuable crypto has no shortage of bearish mid-term prediction as the bulls lose the $40,000 support level, a level that has yet to be established as a meaningful line this year
Despite a strong bearish control, Bitcoin’s price failed to hold the critical levels at $41,500 and $40,000. Bears are likely to aim for the Monday swing low of $38,536, which is an obvious target for investors still in the trade. The BTC price could disappointedly head back towards low $36,000 if the swing low is breached.
Fundamentals
In this week’s crypto market, we saw prices for the biggest coins by capitalization go through some turbulence.
- As a result of the lack of significant price movements, Google searches for bitcoin plummeted to their lowest levels since late 2020.
- On the other hand, despite BTC’s two-day recovery after the sub-$40,000 dip, the popular Bitcoin Fear and Greed index remains in “fear” territory.
- By analysing various factors, such as price volatility, surveys, BTC dominance, trading volume, interactions on social media, etc., the Bitcoin Fear and Greed Index estimates general sentiment within the cryptocurrency community.
- The final results are displayed on a 0-100 scale, with zero representing “extreme fear” and 100 representing “extreme greed.”
- For the first time since November, when BTC was heading towards $50K, the metric went into extreme greed in late March. After BTC cooled off and even fell below $40K in April, the Index dropped to extreme levels of fear.
