At the press time, Bitcoin (BTC), and Ethereum (ETH), appeared to be under pressure, with the global cryptocurrency market cap falling 0.05 percent to $1.7 trillion ahead of a major Federal Reserve policy meeting.
Bitcoin Prize Falling Prediction Today
Bitcoin has been trading in a narrow range for several weeks, notably between $36,000 and $42,000, but it recently broke through the $36,000 support level.
According to Kiana Danial, a crypto specialist and creator of Invest Diva, the leading crypto could find medium-term support between $31,000 and $37,000.
Ethereum stands at 5.4% down (ETH -4.69%)
The dollar index – a measure of the dollar’s strength versus six other currencies — rocketed up to 103.72, the highest level since December 2002, ahead of the Federal Open Market Committee meeting on Wednesday, where investors are expecting a likely 75 basis point interest rate hike.
While potential new regulatory developments in the United States have traditionally been a cause of crypto market volatility without causing significant changes, it appears that serious changes are on the way.
President Joe Biden is expected to sign an executive order this week directing government agencies to investigate potential cryptocurrency laws, prompting stock market sell-offs.
According to Moya, Bitcoin, Ethereum, and other top cryptocurrencies like Dogecoin (DOGE -6.41%) could suffer significant losses as a result of rising inflation, geopolitical problems, and concerns about tighter monetary policy.
According to the cryptocurrency trader Justin Bennett, the market’s mood leading up to Wednesday’s FOMC meeting will be “indecision.”
In Monday’s trading, he tweeted, “A good time to do nothing and safeguard your capital,” referring to the correlation between the equities markets and Bitcoin.
Fear, confusion, and doubt among the crowd are indicators of “ideal price rise conditions,” tweeted Santiment.
Experts argue that the crypto market has been increasingly tracking the stock market recently, which, when combined with more widespread use and the recent price slumps, makes it even more intertwined with macroeconomic variables.
Ethereum has followed in the footsteps of Bitcoin
Bitcoin had been stuck below $40,000 since early March when it jumped 10% to above $42,000 after President Joe Biden signed a comprehensive executive order on cryptocurrency.
Biden’s executive order directed government agencies to develop a framework to regulate bitcoin and to consider a central bank-issued digital currency. It was the White House’s first concrete step toward regulating bitcoin.
What Does This Drop-in Cryptocurrency Prices Mean for Crypto Investors?
Price swings are to be expected for individuals who invest in crypto for the long term using a buy-and-hold approach.
Cryptocurrency investments should make up less than 5% of your whole portfolio, according to Bill Noble, chief technical analyst at Token Metrics, a cryptocurrency analytics platform, if you’ve done that, don’t worry about the swings since they’ll keep happening.
As long as your crypto investment doesn’t get in the way of your other financial goals and you invest only what you can ultimately lose, Yang recommends the same strategy that works for all long-term investments. ‘Recommended: invest in it and forget it.’
If you are concerned about these types of extreme drops, you may be investing heavily into your crypto investment. You should invest only what you can lose.