[Blockchain Today Correspondent Yohan Park] Bitcoin price plunged below $44,000 after the Federal Open Market Committee (FOMC) announced plans to reduce its balance sheet in December minutes, Cointelegraph reported. .
The stock market came within minutes of the Fed’s announcement of minutes of its December Federal Open Market Committee (FOMC) regular meeting released by the Federal Reserve on Wednesday (local time), as regulators expressed their will to cut their balance sheet and raise interest rates in 2022. This fell. At the same time, the cryptocurrency market, including Bitcoin (BTC), also turned to a downward trend.
As the stock market corrected, the price of BTC dropped below $44,000, triggering a series of liquidations totaling $222 million in less than an hour.
According to a study by Cointelegraph Markets Pro and TradingView, Bitcoin hit an intraday low of $43,717 after moving around the $46,000 support level over the past few days.
The balance sheet contraction could begin before the summer, as the Fed can now start raising rates in March, according to experts.
Cryptocurrency analyst and professional trader Rekt Capital emphasized that “these Bitcoin price movements have a lot of similarities between May 2021. It merges within the green 21-week moving average (EMA) and the blue 50-week EMA. If Bitcoin repeats its history, it may break below the blue 50 EMA for a while.”
Michael van de Poppe, a cryptocurrency analyst and contributor to Cointelegraph, predicts that if Bitcoin fails to recover to $46,000, it could drop to $30,000 as long-term sell-offs dominate. .
Currently, the total cryptocurrency market capitalization is $2.123 trillion, of which Bitcoin occupies 39.4% of the market.
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