Overview
- Bitcoin is holding strong despite scrutiny from regulatory bodies and a volatile market.
- The S&P 500 is stuck in a range between the 0.75 and 0.5 levels, with a break either up or down likely to determine the next direction of the market.
- The quarter-point interest rate rise by the Federal Open Market Committee (FOMC) presented a challenge for both the crypto and stock markets.
Bitcoin Holds Strong
Despite facing challenges from regulatory bodies and a volatile market, Bitcoin’s price point of $27,727 indicates that it is performing well. Its all moving averages are angled upwards, suggesting that strong momentum could push prices higher. Structural changes and upcoming airdrops could also play an influential role on its behavior.
Rising Interest Rates Challenge Crypto and Stock Markets
The quarter-point interest rate increase by the Federal Open Market Committee (FOMC) was in line with expectations but took traders off guard as they had to take profits while Bitcoin slid under $27,000. BTC-tracked futures traders experienced over $150 million in losses, with longs accounting for over 75% of these losses. The decision reinforces the Federal Reserve’s commitment to returning inflation to its 2% objective but resulted in billions in open interest being washed out.
High-Timeframe Investors Benefit from Pullbacks
Expert crypto analyst Jonathan Fiorenza believes that any pullbacks from Bitcoin’s current price point offer significant opportunities for high-timeframe investors to leverage on this opportunity. With potential structural changes looming over the cryptocurrency industry, smart investors can use these pullbacks to their advantage by taking long positions when prices are low.
Monitoring Market Movements
Traders should keep an eye on both the broader stock markets‘ movements as well as upper and lower limits of its range in order to benefit from pullbacks or further increases in value respectively.. This will help them make informed decisions when it comes to trading cryptocurrencies as they can capitalize on any volatility present within the market itself or due to external factors such as rising interest rates or regulatory scrutiny.