Is the Worst Behind Bitcoin? Glassnode Co-Founders Look at State of BTC After Another Fed Rate Hike
The creators of one of many prime on-chain analytics corporations within the crypto house are weighing in on Bitcoin (BTC) after the Federal Reserve issued one other rate of interest hike.
In Glassnode’s newest e-newsletter, Jan Happel and Yann Allemann say that Bitcoin is buying and selling under $20,000 because of “intense strain” caused by a contemporary fee hike to the tune of 75 foundation factors (bps).
In response to Happel and Allemann, the Fed’s hawkish stance is overshadowing elementary developments within the crypto house, driving Bitcoin to face elevated threat coupled with bearish momentum.
“Each the financial coverage and regulatory fronts are providing nothing aside from headwinds to crypto.”
On prime of an unfavorable macro backdrop, the Glassnode co-founders additionally say that BTC’s rising quantity amid a bearish development might portend extra for ache for Bitcoin holders.
“Every time spot quantity backs a downward development, it tends to increase into the close to future, and a reversion requires substantial shopping for strain.”
The duo additionally highlights that merchants and speculators are displaying indicators that they aren’t optimistic concerning the prospects of BTC.
“The futures-to-spot quantity ratio is properly under one, and because the 50 bps shock fee hike in June, it has trended downward steadily. This improvement signifies much less confidence and hypothesis within the system.”
General, the Glassnode executives predict that Bitcoin will proceed to commerce in a variety inside a bearish atmosphere.
“In response to J. Powell’s remarks, a subsequent 75 bps fee hike, earlier FOMC (Federal Open Market Committee) weeks, and the state of the system, Bitcoin possible continues to commerce within the $17,000-$25,0000 buying and selling vary. Though the spot market noticed an uptick in traded quantity, the choices and futures market denoted promoting strain amidst a high-risk and bearish regime.”
At time of writing, Bitcoin is swapping fingers for $19,033, down over 1% on the day.
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