Fed Announces Inflation Warnings As Bitcoin Whales Remain In Wait Mode
30 June 2022 - 11:04PM
NEWSBTC
Over the past few hours, the price of bitcoin has deviated from a
key level of support and fallen below $19,000. The transaction
history reveals that many addresses purchased Bitcoin for more than
$20,000. These market players would soon liquidate their holdings
to prevent further losses, which would set off a decline toward
$16,000 Inflation Warnings Affect Bitcoin Price Due to major
inflation worries and rate hikes indicated by central banks,
particularly the US Federal Reserve, BTC has almost lost half of
its value over the previous month. Bitcoin’s market valuation has
fallen from $1.27 trillion in November 2021 to under $366 billion
at present. Jerome Powell, the chairman of the Federal Reserve,
reaffirmed the Fed’s commitment to raising interest rates in order
to reduce inflation. He stated during the ECB meeting that the
challenge of inflation was more concerning to him than the
potential for rising interest rates to cause the U.S. economy to
enter a recession. “Is there a risk we would go too far? Certainly,
there’s a risk,” Powell said. “The bigger mistake to make – let’s
put it that way – would be to fail to restore price stability.”
BTC/USD falls below $20k. Source: TradingView Powell argued that
the Fed needs to quickly raise rates because a gradual hike may
give consumers the impression that increased commodity prices would
not go away. He said that rate increases might be lessened before
the next year. Related reading | Doom To Fail: Tether Shorts Pile
In As Hedge Funds Seek To Profit From Crypto Winter Following
Powell’s remarks, U.S. equity market futures declined, with those
for the S&P 500 dropping 1.59% and those for the tech-heavy
Nasdaq 100 losing 1.9%. Asian markets were down, with the Asia Dow
index and Japan’s Nikkei 225 both down 1.54%. Data Suggests Whales
Are Waiting On-chain data on CryptoQuant suggests that most traders
are awaiting the next significant price decline. The price
anticipation appears to be for a short-term opportunity, though.
On-chain data also implies that big whales are waiting for a good
opportunity to accumulate cryptocurrencies, not only tiny and
average traders. Data shows that, interestingly, whales’ holdings
in Bitcoin are not now growing. This demonstrates unequivocally
that the whales are awaiting a better opportunity. Whales’ holdings
between 100 and 1,000 and between 1,000 and 10,000 Bitcoins
currently exhibit a flat line. Related reading | Bitcoin Slides
Under $20K – Another Collapse In The Offing? Featured Image from
Pixabay and Chart from tradingview.com
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