On Monday, September 19, the quotes of the first cryptocurrency did not stay above $19,000. Over the past day, the asset has fallen in price by 7.8%, according to CoinGecko.
At the time of writing, Bitcoin is trading near $18,460. The chart below shows that the price decline was accompanied by a surge in trading volume.
The second largest cryptocurrency by capitalization has lost 10.8% over the past day, having failed the $1300 level.
All crypto assets from the top 10 also moved into the red zone. The most notable drop was for Caradano (-9%).
According to Coinglassas a result of a correction in the futures market, positions worth more than $418 million were liquidated. Most of it fell on Ethereum – $168.6 million.
The capitalization of the cryptocurrency market amounted to $943.6 billion. The Bitcoin dominance index is 37.6%, ETH is 16.6%.
The main event of the week that puts pressure on the first cryptocurrency is the meeting Fed September 21. According to the futures market, the probability of raising the key rate immediately by 75 bp. p. is 80%.
The growth of the core indicator of inflation, contrary to the forecast, strengthened the perception of the speech of the head of the Fed, Jerome Powell, as part of the symposium in Jackson Hole. Then the official warned about the intention don’t rush to cut rates to maintain control over inflationary expectations.
September 13 Bitcoin is under pressure against the background of the publication of the macroeconomic release. According to the document, the annual growth of consumer prices in the US in August slowed down to 8.3%, which strengthened the scenario for maintaining the aggressive policy of the Fed.
Bloomberg Strategist Mike McGlone expelled the possibility of easing the Fed’s key rate in the near future. Analyst Twitter account Games of Trades noted that the S&P 500 has reached a critical time before the start of trading on Wall Street.
#SP500 has reached its “line in the sand” level.
This is the point of sink-or-swim. Fly-or-fall. Fish-or-cut-bait. pic.twitter.com/ZaCfAfcHcE
— Game of Trades (@GameofTrades_) September 18, 2022
Recall that the former manager of the hedge fund Cramer & Co. and CNBC Mad Money host Jim Cramer said the Fed’s monetary tightening will lead to washout speculative assets like cryptocurrencies.
Philosopher and author of the cult work “The Black Swan” Nassim Taleb called bitcoin a “tumor”which led to the emergence of a flexible monetary policy of the Fed.
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