Bitcoin (BTC) slumped further on Wednesday ahead of a widely anticipated interest rate hike by the Federal Reserve later in the day.
BTC is trading at $21,200- down 4% in the past 24 hours. The world’s largest cryptocurrency has plummeted 30% since last week after a higher-than-expected U.S. inflation reading.
Focus now turns to how the token could react to a Fed rate hike later in the day. BTC had tumbled when the Fed raised rates in early-May, and likely faces a similar capitulation this time.
Technical indicators show BTC is primed to sink as low as $13,000 if this downtrend continues. Broader uncertainty over the crypto industry is also causing weakness in the token.
BTC capitulated over 8% after the Fed raised rates on May 4. It then went on to slump another 28% to as low as $28,000 in the next week, as a crypto rout intensified.
Last time, the Fed raised rates by 50 basis points (bps). Now, given the heated inflation figures, traders are positioning for a 75 bps hike by the central bank, according to data from CME Group. It would be the Fed’s sharpest hike in recent history.
Source:
https://coingape.com/can-bitcoin-btc-crash-to-13k-after-the-fed-rate-hike/
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