Bitcoin succumbs to market pressure
Bitcoin slipped after previously trying to breach the resistance at $26k. This occurred following the announcement to hold interest rates steady by the Federal Reserve.
Bitcoin dominance continues to near the 50% ratio despite the slip.
Bitcoin falls following recent regulatory crackdown
Over the past day, the price of a BTC slipped to the $25k level. This followed the outcome of the Federal Reserve’s June meeting. The price is currently exchanging hands at $25,685.
The price plunged to a low that it hasn’t seen in the last three months. The aggressive campaign to frantically hike interest rates over the past 15 months have impacted the price of the coin. If Bitcoin can’t hold the line above $25,000, further downside should be expected.
Over the last few weeks, BTC has been stuck in the $26k region as the market came to battle its regulatory woes.
Barely three hours after the FOMC meeting, the sharp drop in price arrived. The Fed hinted that it may still increase interest rates in the future, which dampened investor excitement for risk assets like cryptocurrencies.
“Much of the positivity we’ve seen from risk assets this year, including Bitcoin, is built on the expectation that inflation will fall and interest rates will peak, and then begin to be cut,” eToro market analyst Josh Gilbert said.
“Inflation is moving in the right direction but the comments from Jerome Powell signify that rates could stay higher for longer, which would put Bitcoin on the back foot,” he added.
Bitcoin dominance may reach 50%
According to TradingView data, Bitcoin’s market share was 49.15% at the time of writing, closing above a horizontal channel that extends through May 2021. The coin entered a territory with little opposition until nearly 60% domination after creating a traditional bullish candle on the weekly chart.
As shown by on-chain analytics company Glassnode, Bitcoin dominance has increased 7.6% year to date and is currently standing at 47.6%.
Numerous popular altcoins experienced price declines during the previous day or so. Cardano (ADA) is now at $0.256 after losing 6.7% during that time, and Polygon (MATIC) is now worth $0.607 after losing 7.04% of its value.
Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.