Due to historically high inflation and ongoing geopolitical uncertainty, Bitcoin and the larger cryptocurrency market have suffered in recent weeks, as the Federal Reserve started raising interest rates in response. Economists polled ahead of the release of statistics on Tuesday expect that inflation in the United States will have increased to 8.4% in March, the strongest rate since early 1982. According to Goldman Sachs Group Inc. Chief Economist Jan Hatzius, the Federal Reserve may be forced to hike interest rates “significantly” higher than it currently forecasts in order to calm an unsustainable U.S. economy.
Bitcoin price analysis
Currently, Bitcoin is trading at $40,266, down 4.77% on the day and 13.66% in the last week after seeing a steady climb up until the Bitcoin 2022 conference in Miami, according to CoinMarketCap. Interesting, prominent crypto trading analyst Michaël van de Poppe pinpointed the $40,000 mark as an important level for BTC “while equities are also still dropping. Let’s see. I’d like to see a reaction here. Other crucial levels if lost; $38K Sub $33K.”
Equities correlated to yields
Notably, Lead Insights analyst Will Clemente noted the fixed-income market is selling off aggressively, with the 10-year yield breaking out of a multi-decade long downtrend. Clemente highlighted this is putting pressure on equities, especially the Nasdaq. Tech stocks, as Finbold reported are ‘feeling the heat’ as U.S. 10-year yields rise to the highest level since 2019 According to the analyst: In his opinion, he sees closing above $47,000 as momentum and still sees the low $30,000 as value. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
