- The largest currency climbed to $48,000 last week before retracing its course.
- The Nikkei 225 index of Japan’s stock market fell more than 1.5 percent earlier today.
A 5% correction has occurred in Bitcoin (BTC), and the wider crypto market as investors prepare for the Fed’s largest rate hike. Bitcoin hit a low of $42,700 earlier today before somewhat rebounding. The BTC price has fallen below $43,000 for the first time since March 24, 2022. The biggest cryptocurrency in the world has fallen by more than 11.5% in the previous two days.
The top ten cryptocurrencies have seen a similar reduction, with 4% to 10%. According to Bloomberg, an equities market sell-off has led to an increase in selling pressure on crypto. The Nikkei 225 index of Japan’s stock market fell more than 1.5 percent earlier today.
Signs of Growth Over Last Week
Over the last three months, Bloomberg reports, the link between Bitcoin and the US stock market has increased. The cryptocurrency sector has shown signs of growth over the previous several weeks, including Bitcoin. The largest currency climbed to $48,000 last week before retracing its course. After today’s dip, Bitcoin (BTC) is still up 18% on the monthly chart.
$42,500 is a level where Bitcoin may find short-term support for the time being. Bitcoin (BTC) millionaire Mike Novogratz thinks that if the Federal Reserve takes a break, the price of BTC will rise once again. With hints of at least four more rate increases, the Fed doesn’t seem to be slowing down soon.
As inflation continues to rise, Novogratz believes that the Federal Reserve will stay hawkish for some time and that the interest rate might rise by 50 basis points right away. But he adds that when the Fed pulls back, “Bitcoin goes to the moon.”
