Fears arising from further tightening interest rates likely led to more sell-offs in the crypto market as Bitcoin declines below $22000.
The crypto market reacted in a subdued manner after comments from the Chairman of the Federal Reserve, Jerome Powell, indicated increasing the rate of interest hikes to control inflation. Bitcoin declined just below $22000, while other cryptos also reacted negatively. Powell’s comments also led to higher levels of volatility in the stock market.
“The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated,” said Powell, indicating that inflation could show up higher in the latest data. Analysts and experts have worried about decreasing liquidity in the crypto due to the interest rate hikes, which may lead to further dips.
But most experts believed the present situation was an opportunity for experienced investors to buy the dip, leading to Bitcoin expecting better runs in 2023. Bitcoin’s 24-hour volume stood above $27 billion, while it occupied a market capitalization of over $418 billion in the crypto market. Its immediate resistance was at $22000, while support was at $21500.
BTC/USD YTD price chart
Bitcoin is currently trading at around $21600 on March 9, 2023, with BTC/USD down by 0.33% in the previous 24 hours. Almost all other cryptos witnessed negative trends in the last 24 hours. BTC/USD is trading lower than its 20-day EMA (23,114.97). As Bitcoin declines, the crypto market showed signs of a buying opportunity for investors and traders, which could lead to a further rally in the market in the short term.