Bitcoin: Where does BTC go? Glassnode Co-Founders look at state of BTC after another Fed rate hike
The creators of one of the leading on-chain analytics firms in the crypto space are valuing Bitcoin (BTC) after the Federal Reserve launched another rate hike.
In the latest Glassnode newsletter, Jan Happel and Yann Allemann say that Bitcoin is trading below $20,000 due to “intense pressure” due to the rate increase by 75 basis points (bps).
According to Happel and Allemann, the Fed's positive stance is overshadowing fundamental developments in the crypto space, leaving Bitcoin exposed to increased risks along with downside momentum.
“Both monetary policy and the regulatory front are nothing but headwinds for crypto.”
In addition to the unfavorable macro backdrop, the Glassnode co-founders also say that increased BTC volume amid a downtrend could herald additional pain for Bitcoin holders.
“Any spot volume supports the downtrend, it tends to expand in the near future and a reversal requires significant buying pressure.”
The duo also emphasized that traders and speculators are showing signs of not being optimistic about the outlook for BTC.
“The ratio of futures volume to spot volume is much lower, and since the surprise 50bp rate hike in June, it has been on a downward trend. This development suggests less trust and speculation in the system.”
Overall, Glassnode executives predict that Bitcoin will continue to range-trade in a bearish environment.
“Based on comments from J. Powell, the next 75 bps rate hike, the previous FOMC (Federal Open Market Committee) weeks and the state of the system, Bitcoin is likely to continue to trade within the range. micro-transaction $200. 17,000-$25,0000. While the spot market experienced increased volume, the futures and options markets were under selling pressure amid a bearish and high-risk regime.”
At the time of writing, Bitcoin is changing hands for $19,033, down more than 1% on the day.
Sep 26, 2022