{"id":149132,"date":"2022-01-07T19:07:17","date_gmt":"2022-01-07T19:07:17","guid":{"rendered":"https:\/\/precoinnews.com\/?p=149132"},"modified":"2022-01-07T19:07:17","modified_gmt":"2022-01-07T19:07:17","slug":"bitcoin-risks-plunging-below-40k-following-feds-plan-to-raise-interest-rates","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/bitcoin\/bitcoin-risks-plunging-below-40k-following-feds-plan-to-raise-interest-rates\/","title":{"rendered":"Bitcoin Risks Plunging Below $40k Following Fed&#039;s Plan To Raise Interest Rates"},"content":{"rendered":"<ul>\n<li>Bitcoin trades at $41,884 to the consternation of investors.<\/li>\n<li>The Fed\u2019s proposed hike in interest rates plays a key role in the asset\u2019s slump.<\/li>\n<li>Altcoins have also suffered from the recent downturn, posting double-digit losses.<\/li>\n<\/ul>\n<p>Bitcoin has not started the year with a bang as things have gone from bad to worse. As the asset tumbles, it is dragging the rest of the markets with it underwater.<\/p>\n<h2><strong>Bitcoin Falters<\/strong><\/h2>\n<p>Bitcoin investors are in a state of panic as the asset falls to new lows. Over the last 24 hours, Bitcoin has fallen by 7.89% and trades at $41,884. The recent slump is the first major price change of the asset in weeks after spending the holidays in the doldrums of $48K-$50K. The weekly chart shows a decline of as much as 9% as experts look for answers.<\/p>\n<p>The decline in prices is in sync with the correction of the stock markets. A potential reason for this decline is the revelation of the details of the Federal Reserve FOMC meeting that showed plans for the increase of interest rates for the new year.<\/p>\n<p>According to officials, <em>\u201cit may become warranted to increase the Federal funds rate sooner or at a faster pace than participants had earlier anticipated\u201d<\/em>. The minutes also indicate plans by the Fed to reduce the size of their balance sheets for bonds in a bid to increase interest rates in the long term.<\/p>\n<p>As a consequence, Bitcoin reacted unfavorably to the news with some commenting that this could be the start of the bear market for the premier market. Some analysts have fixed the $40K mark as the Rubicon for the asset.<\/p>\n<p><em>\u201cAnd the scenario of the drop beneath $46K is taking place on Bitcoin here.\u201d<\/em> said van de Poppe, a Bitcoin analyst. <em>\u201cThe question becomes will we be hanging here, taking the liquidity &amp; breaking back above $46k? In that case, the bottom is in.\u201d<\/em><\/p>\n<p>Rekt Capital suggests that BTC charts show several similarities with the crash of May 2021. <em>\u201cBoth saw BTC consolidate inside two Bull Market EMAs (i.e., green 21-week &amp; blue 50-week EMA). If BTC is to repeat history, a capitulation event could take place where BTC briefly deviates below the blue 50 EMA.\u201d<\/em><\/p>\n<h2><strong>Where Does This Leave Bitcoin?<\/strong><\/h2>\n<p>The recent price slump leaves Bitcoin with a market dominance of just 39.70% as it loses its grip on the entire pie. The asset\u2019s market capitalization is well below the trillion-dollar mark at $790 billion despite daily trading volumes up by 55%.<\/p>\n<p>The new price represents a staggering 36.75% plunge from the all-time high of $68,789 that it achieved in 2021. As the asset falters, pundits are advancing claims that this could be the start of the bear market. <\/p>\n<p>However, a wave of positive reports from regulators in the US could serve as a catalyst that reverses the tide. In February, the Securities and Exchanges Commission is scheduled to give a decision on whether to approve or disapprove the applications of two spot Bitcoin ETFs.<\/p>\n<p>Source: <a href=\"https:\/\/zycrypto.com\/bitcoin-risks-plunging-below-40k-following-feds-plan-to-raise-interest-rates\/\" target=\"_blank\" rel=\"noopener\">Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin trades at $41,884 to the consternation<\/p>\n","protected":false},"author":3,"featured_media":149131,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bitcoin Risks Plunging Below $40k Following Fed&#039;s Plan To Raise Interest Rates - Pre Coin News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/precoinnews.com\/bitcoin\/bitcoin-risks-plunging-below-40k-following-feds-plan-to-raise-interest-rates\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bitcoin Risks Plunging Below $40k Following Fed&#039;s Plan To Raise Interest Rates - 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