Bitcoin (BTC)Crypto News

Could Bitcoin Heading For $ 30,000?

The cryptocurrency market is showing signs of recovery this week. After testing the $ 45,000 support on Monday, buyers took the initiative and again managed to push the price back above the $ 48,000 mark.

This reversal brought optimism to the market and raised hopes for a resumption of an uptrend targeting one resistance of 100,000 USD.

However, if we look objectively at general market conditions, we get a different picture. With the news background not changing, the current rebound looks more like one correction which could be followed by another wave of sell-offs.

The market remains under pressure due to recent remarks from Securities and Exchange Commission (SEC) chairman Gary Gensler, who said that investors need serious protection as cryptocurrency exchanges have direct access to client funds.

Market participants interpreted such rhetoric as an intention to tighten the regulation of cryptocurrency exchanges. Federal Reserve Chairman Jerome Powell later drew on the matter, noting:

“Stablecoins can be a useful, efficient, and consumer-friendly part of the financial system when properly regulated.”

The pressure on the cryptocurrency market comes solely from the rhetoric of the chairman of the Federal Reserve and the actual actions taken by the regulator to tighten monetary policy. Let us remember that following the results of last week, the bank’s management decided to take a more proactive stance in the fight against.

To that end, the Fed intends to accelerate its initial throttling schedule and end its bond purchases in March 2022. In addition, most FOMC members expected at least three rate hikes in the next year, while most of them only forecast one rate hike three months ago.

The acceleration in the pace of the expansion of bond purchases, coupled with the high likelihood of an initial rate hike in the first quarter of 2022, will help maintain its positions on all risky assets, including Cryptocurrenciesto strengthen.

In addition, market sentiment deteriorated significantly with the growing number of new cases of the Omicron coronavirus worldwide. To prevent the spread of Omicron, Europe has already introduced bans and travel bans.

US public health officials have warned that the arrival of the Omicron variant in the coming weeks could be a disaster for already overwhelmed hospitals.

President Biden’s senior medical adviser Anthony Fauci said he was expecting a record number of COVID-19 cases this winter and urged Americans to get booster vaccinations. The Omicron variant has been detected in 90 countries and the number of cases doubles in 1.5 to 3 days in areas with community transmission.

With this in mind, market participants prefer to avoid risk and shift their capital to defensive investments. Still has Bitcoin still has the potential to drop to $ 30,000.

Source: Crypto News Deutsch

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