Bitcoin Drops Below $30K, Dollar Bounces Ahead of Fed Reserve Rate Announcement – CoinDesk

by crypto journalist

The number one cryptocurrency by market value is trading near $29,500 [updated] at press time, representing a near 10% drop on the day, according to CoinDesk 20 data. European stocks and futures tied to the S&P 500 are flashing moderate losses. The Dollar Index, which tracks the greenback’s value against major fiat currencies, is hovering near 90.40, representing a 0.3% gain.

“BTC may face selling pressure if Powell signals an early taper,” Darius Sit, co-founder and managing partner at Singapore-based QCP Capital, told CoinDesk. Bitcoin, considered by many a hedge against monetary and fiscal imprudence, has moved largely in opposition to the dollar index since the March markets crash.

However, most observes, including QCP Capital’s Sit, don’t expect Powell to rock the boat. The Fed made it clear in August it intends to keep interest rates low for some time even after inflation climbs above 2%.

Bitcoin is currently trading in a $30,000–$35,000 range established over the past four days, having dipped below $29,000 on Friday. Analysts foresee further sell-off on signs of weaker institutional demand.

“Bitcoin has been trading in a tight consolidation for the past six days, with several failures to close above $32,500,” Matthew Dibb, COO and co-founder of Stack Funds, told CoinDesk. “From a technical analysis point of view, it is consistently making lower highs. The short-term momentum indicates a possible slide to $26,000.”

This content was originally published here.

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