Bitcoin fell 6% to $ 39,774 early Monday morning, while slowing its losses. According to data compiled by the Bloomberg Galaxy Crypto Index, the queen of cryptocurrencies has already fallen by about 13% over the past seven days, which is the worst annual start ever.
Major cryptocurrencies in a market filled with over 15,000 cryptoassets have followed this negative trend. Over the past week, Ethereum has dropped about 21% to $ 3008.01, while Solana has dropped 4% to $ 132.44.
Looking ahead, analysts believe the most quoted cryptocurrency on the market, like other altcoins, will remain under pressure.
“Cryptocurrencies are likely to remain under pressure as the US Federal Reserve (FRS) is cutting back on its liquidity injections,” Jay Hatfield, CEO of Infrastructure Capital Advisors, commented in an interview with Bloomberg.
The CEO even predicts the likelihood that “Bitcoin will end the year below $ 22,000.” A forecast not accompanied by this year’s Bloomberg forecast for the cryptoasset market, which, even with tight monetary policy in the US, estimates that “the bitcoin support line is at the center of $ 40k and the resistance line is at $ 100k.”
Noel Acheson, who is in charge of market analysis at Genesis Global, recalls that “tighter Fed policy affects not only interest rates, but also high-risk investments such as cryptocurrencies.”
Last week, there was another sign that the Fed could act more aggressively if inflation remains high. Indeed, minutes from the last meeting of the US Federal Reserve showed that central bank members were pledging to start raising interest rates earlier than expected and in a faster manner. The first increase may even be in March.
