Bitcoin Crashes Below $47K as Stocks and Crypto Plummet Ahead of Fed Crucial Meeting

UTC by Bhushan Akolkar · 2 min read
Bitcoin Crashes Below $47K as Stocks and Crypto Plummet Ahead of Fed Crucial Meeting
Photo: Depositphotos

As the Federal Reserve starts tapering the stimulus release, the equity and stock market have come under significant pressure. Here’s what market analysts have to say about the Bitcoin price action going ahead.

It was another bloodbath on Satoshi Street on Monday, December 13,  as the massive sell-off has eroded more than $150 billion of investors’ wealth. The world’s largest cryptocurrency Bitcoin (BTC) continues with its downward trend plummeting below $47,000 levels ahead of the scheduled Fed meeting.

The crypto market correction also coincides with Monday’s stock market correction. On Monday, both the Dow Jones (INDEXDJX: .DJI) and the S&P 500 (INDEXSP: .INX) corrected 0.9% each.

Analysts note that the recent pullbacks in the equity and crypto markets have been due to the upcoming meeting of the Federal Open Market Committee (FOMC). The Bitcoin price has already corrected more than 40% from its all-time high of $69,000 in November. But this wouldn’t be the end of the pain for BTC investors. Some analysts expect it to dip all the way to $42K before heading for the reversal.

Tapering Actions of Fed Can Put Further Pressure on Bitcoin

The US Central Bank aka the Federal Reserve is all set to start the tapering of the stimulus program started in the Covid-19 pandemic. Fed’s massive money printing over the last year has encouraged many to participate in equities and crypto.

But with the fear of rapidly rising inflation, the tapering will start sooner than expected. A recent report from Delphi Digital notes that Bitcoin (BTC) is facing major headwinds with regulatory matters in the US It said:

“The latest tightening by global policymakers and Fed tapering has already caused markets to reprice. BTC is among one of the worst-performing assets compared to traditional asset classes since the November FOMC meeting, losing nearly 20% of its value over the last month.”

While it has really set a gloomy picture for all Bitcoin investors, some market analysts have been showering hope. Popular crypto analyst CryptoCapo compares the recent price dump with that of September 2021.

Another popular crypto analyst Michaël Van de Poppe said that the Bitcoin price is dropping down after facing rejections at key resistance levels. The analyst further said that Bitcoin is looking for a bullish divergence to be created under $46,500 levels for a possible reversal.

Another market analyst Rekt Capital noted that the recent downside volatility is nothing out of the ordinary for Bitcoin.

Following the Bitcoin correction on Monday, all of the top-ten cryptocurrencies have also corrected anywhere between 5-10%.

Bitcoin News, Cryptocurrency News, Market News, News
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