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The total value of cryptocurrencies dropped to $ 2.1 trillion during yesterday’s digital asset sell-off following the release of the Fed Protocols. The document contained the results of the vote of the US bankers on the discount rate and comments that determine the future policy.
The growth of Bitcoin and altcoins, like stock market shares, directly depends on the Fed’s soft policy, which stimulates investments in risky assets with cheap loans and bond buybacks.
The released Protocols made it clear that everything will change in 2022, American bankers voted for an earlier rate hike, if the labor market indicators allow it. Just on Friday, statistics on US unemployment and employment are released, which can lead to another wave of sales of digital currencies.
In this case, the bears will get a chance to break through the important December low of last year, which became the point of rebound in Bitcoin quotes from $ 41 thousand to $ 50 thousand. The recent sell-off has caught the attention of investors, judging by the rise in volatility above average. Such an intersection in 80% of cases becomes a signal of a sharp strengthening of the trend, which is now clearly directed downward.
A prolonged fall in Bitcoin will lead to the formation of the “Cross of Death” on the crossover of moving averages (MA), with a period of 50 and 200 days. Traders remembered this signal from the 2018 crypto winter, when BTC lost more than 80% of its value. Now the quotes of the main cryptocurrency are below historical highs by 40%.
Decisive week for Bitcoin
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