Bitcoin could go below $20,000 again , some state it may hit $16,000
New price targets have been placed on Bitcoin by analysts after the cryptocurrency fell below the $20,000 mark. Data from Cointelegraph Markets Pro, and TradingView showcased BTC/USD hitting $19,945 after comments from the United States Federal Reserve came to light.
The pair saw a 9% loss and the US equities cratered due to inflation policies outlook that seems to be straying from the earlier narrative of a “soft landing.”
Fed Chair Jerome Powell made a few statements:
“Restoring price stability will take some time and requires using our tools to forcefully bring demand and supply into better balance. Reducing inflation is likely to require a sustained period of below-trend growth. Moreover there will very likely be some softening of labor market conditions.
“Restoring price stability will take some time and requires using our tools to forcefully bring demand and supply into better balance. Reducing inflation is likely to require a sustained period of below-trend growth. Moreover there will very likely be some softening of labor market conditions.
While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses. These are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain”
These talking points made by Powell resulted in downward volatility spikes seen across riskier assets.
Stocks in the United States have lost $1.25 trillion in a single session, that’s more than the entire market cap of the crypto market.
Currently, at the time of this writing, Bitcoin sits at $19,950 after a short relief bounce to $20,200. There were influencers that painted short-term relief targets between $23,000 and $23,500 but also noted that there was the possibility to reach $19,000 or even $16,000 per Bitcoin.
The U.S dollar is still taunting the crypto market as the dollar index rebounded to levels putting it within range of twenty-year highs.
US dollar index (DXY) 1-hour candle chart
The FED continuing forward with their plans means the $DXY will maintain a trend and assets will continue to trend down. Most major bottoms in $BTC have correlated with the tops of $DXY according to Danny Baldus-Strauss investor and entrepreneur.
