Bitcoin was triggered negatively by the interest rate hike announced by the Federal Reserve, which likely caused a crypto market dip.
The market capitalization of the crypto market declined marginally as the crypto market did not react positively to the interest rate hike by the Federal Reserve. During the evening of March 22, Bitcoin was trading above $28500 but then registered a sharp decline, falling below $27000. It started recovering gradually from the early hours of March 23, climbing above $27500.
Crypto market volumes had also increased to over $65 billion in the last 24 hours, which indicated heightened activities during the crypto market dip. Investors and traders could have booked profits ahead of the interest rate hikes, which could have also contributed to the last day’s downward movement. On a positive note, Bitcoin was still above 15% from its trading level exactly a week back.
Experts feel the sudden crypto market dip could be a knee-jerk reaction to the interest rate hikes and brushed aside any negative effects for the crypto market in 2023. Bitcoin had already touched a 9-month high in the last week, and this positive momentum is expected to continue in the year. Ethereum was also trading above $1750 on March 23.
Bitcoin is currently trading at around $27700 on March 23, 2023, with BTC/USD down by 1.8% in the previous 24 hours. Most other altcoins witnessed mixed movements in the last 24 hours. BTC/USD is trading higher than its 20-day EMA (24,089.90). Bitcoin witnessed a 24-hour trading volume of approximately $51 billion.