Even though at yesterday’s FOMC meeting, it was decided to raise the rate by 75 basis points, there was no surge in volatility in the cryptocurrency market. Perhaps the market reacted to this event earlier since the intention to raise the rate was known in advance.
Yesterday, one of the main questions was whether the price of Bitcoin would hold above $20,000. Yesterday, the BTC price reached a low of $20,079. It seemed that the BTC/USD pair would still try to fall below 20,000. But this did not happen. The BTC/USD pair bounced off the 20,000 mark and even tried to return to the 23,000 area. At the press time, the BTC/USD pair has fallen back to the 21,000 area.
Analysts are still optimistic about Bitcoin. They believe that the possibility the BTC price will fall below 20,000 is low enough. And the current decline in the price of Bitcoin is a springboard to future growth. Now technical indicators indicate that the coin is oversold. Since we did not see an attempt to break down the 20,000 mark, there is an assumption that this level will provide enough support for the BTC/USD pair.
According to a survey conducted in April by PWC among 77 cryptocurrency hedge fund managers, the majority of those surveyed believe that the BTC price will be between $75,000 and $100,000 by the end of the year.
However, some players, such as Peter Schiff, consider Bitcoin a bubble, and the current situation is a bubble burst, which leads to bad consequences.