Continuous interest rate hikes and worsening global markets are making Bitcoin’s position uncertain.
Interest rates were raised by the Bank of England on November 3 by 75 basis points following the Federal Reserve’s rate hike. It was the biggest rate hike for the Bank of England since 1989, increasing the risk of a prolonged recession as the Monetary Policy Committee found it difficult to control inflation.
Though Bitcoin has been hovering over and around the $20000 mark since over a week, analysts presume it might be difficult to hold the support since traditional markets have been highly volatile, and the monetary authority of the UK also claimed the economy is facing challenging times with high energy prices and tight financial conditions. On November 3, Bitcoin witnessed a low of around $20,300 before settling down at slightly over $20,500.
BTC/USD 3 month price chart
As of November 4, Bitcoin is trading around $20,600, with BTC/USD up by 1.98% in the last 24 hours. Bitcoin is currently trading above its 20-day EMA (20085.55), but it is unlikely for this to hold. Analysts hold mixed opinions as the broader crypto markets could move either way depending on global financial conditions. The $21000 resistance continues to be faced by BTC, while other altcoins like Ethereum, Dogecoin and Solana also fell by small margins.