The Bitcoin Price Drops Unexpectedly Due to Macroeconomic Factors
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According to Crypto Quant, a lack of an increase in purchasing power by BTC buyers before the FOMC rate announcement in November would most likely cause a massive crash to the downside.
For a relatively long time now, it appears the Fed has had one or two things about interest rate hikes. Recently, the Fed increased the interest rate by 75 basis points (bps).
As of early this month, the BTC price was seen gyrating around the $19,400 price level. The unexpected drop in the Bitcoin price occurred as the United States recorded an eighteen-month low in employment. The record was unfavourable for the crypto market as the report was worse than expected.
Katie Stockton, the founder of Fairlead Strategies LLC., opined: “I think we need to respect the downtrend and assume that the bear-market cycle is still dominant.”
Bitcoin Hodlers Remain Confident in Their Coins
Currently, 42 million addresses are holding BTC. According to a data analytics firm, this is 4.5 million more than in 2021. This implies that despite the unfavourable condition of the crypto market, for now, BTC holders appear optimistic about their digital assets as they relentlessly keep bagging more coins.
By the way, the United Nations Conference on Trade and Development (UNCTAD) recently advised the Federal Reserve to beware of its incessant monetary policy tightening, as this might result in a global recession.
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