Bitcoin price drops to $43.7K after Fed minutes re-confirm plans to hike rates
Bitcoin (BTC) and the wider cryptocurrency market fell under as equities markets pulled back at the closing bell after minutes from the Federal Reserve's December FOMC meeting showed that the regulator is committed to decreasing its balance sheet and increasing interest rates in 2022.
As stock markets corrected, BTC price followed suit by dropping below $44,000, setting off a cascade of liquidations that reached $222 million in less than an hour.
Data from Cointelegraph Markets Pro and TradingView shows that after oscillating around support at $46,000 for the past couple of days, Bitcoin was hit with a wave of selling that pulled the price to an intraday low of $43,717.
Based off the current situation, it is widely expected that the Fed will begin raising its benchmark interest rate in March, “which would mean that balance sheet reduction could start before summer.”
Here’s a look at what crypto analysts are saying about the latest Bitcoin price drop in BTC and what could be in store in the weeks ahead as the easy money policies of the Fede come to an end and interest rates start to rise.
A foreshadowing of Wednesday’s pullback was offered by crypto analyst and pseudonymous Twitter user ‘Rekt Capital’, who posted the following chart highlighting the “many similarities between this BTC range and May 2021.”
Rekt Capital said,
A more in-depth look at the price action from May was offered by analyst and Cointelegraph contributor Michaël van de Poppe, who posted the following chart detailing how BTC performed during the last sharp market pullback.
van de Poppe said,
Should the price not break back above $46,000, the market could be in for an extended bear period that has the potential to see BTC retrace to the low $30,000 range.
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