Bitcoin (BTC) price drops to lowest point in 2 months following release of Federal Reserve meeting minutes.

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Amid a deteriorating macroeconomic environment and the collapse of major players in the industry like FTX and Terra, the price of bitcoin has been under pressure this year.

Bitcoin’s value dropped to approximately $57,000 each on Thursday, marking a two-month low subsequent to the U.S. Federal Reserve unveiling minutes from its June meeting that suggested the central bank is not prepared to lower interest rates.

By around 2:30 p.m. London time, the digital asset had decreased by about 5% within 24 hours, falling to $56,837, slipping beneath the $57,000 threshold for the first time since May 1, according to data from CoinGecko. Following this decline, bitcoin has slightly recovered but was trading at $57,932.57, down by 3.4% as of 5:05 p.m. London time. Additionally, Ethereum, the second-largest cryptocurrency globally, was down by 5% at $3,120.

The Federal Reserve released the minutes of its June meeting on Wednesday, indicating officials’ reluctance to reduce interest rates in the absence of additional data demonstrating sustained movement of inflation towards the central bank’s 2% target.

In general, higher interest rates are considered less advantageous for bitcoin and other cryptocurrencies as they reduce investor appetite for risk.

Bitcoin reached an all-time high of over $73,700 in March this year following the approval of the first U.S. spot bitcoin exchange-traded fund (ETF) by the Securities and Exchange Commission.

Since then, bitcoin has been fluctuating between approximately $59,000 and $72,000. The recent news of the collapsed bitcoin exchange Mt. Gox preparing to disburse around $9 billion worth of coins to users has put pressure on the cryptocurrency, resulting in anticipated selling activity.

Despite this, analysts at crypto data and research firm CCData indicated in a report on Tuesday that bitcoin has not yet reached the peak of its current appreciation cycle and is likely to achieve a new all-time high.

According to their analysis, historical market “cycles” have demonstrated that the bitcoin “halving” event – which reduces the supply of new bitcoins in the market – has always preceded a phase of price growth lasting between 12 to 18 months before reaching a peak in the cycle.

The most recent bitcoin halving event occurred on April 19 this year, so it is yet to confirm if these historical timeframes will hold true.

Tom Lee, a noted bitcoin advocate, mentioned on good’s “Squawk Box” on Monday that he remains optimistic about bitcoin hitting $150,000 despite concerns surrounding Mt. Gox’s forthcoming distribution of tokens to creditors.

Lee, the co-founder and head of research at Fundstrat Global Advisors, expressed in the TV discussion, “If I were invested in crypto and aware that one of the significant concerns is going to be relieved in July, I would anticipate a fairly strong recovery in the latter half of the year.”

For further details, check the original article on CNBC.

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