Bitcoin is currently under the important level of $20,000 as of early Tuesday morning after holding above the $20,000 benchmark for a fair share of time lately. Although bitcoin under $20,000 doesn’t mean there’s for certain more downward moves ahead, the $20k mark is more of a level that seems to be psychological for investors and traders alike.
WHY IS BITCOIN DROPPING?
Last week the during Jerome Powells FED hawkish speech, he indicated that there is still pain ahead likely for assets especially growth assets like Bitcoin.
During the speech JPOW said; “We will take the necessary steps to ensure a return to price stability,” he said. “In particular, if we conclude that it is appropriate to move more aggressively by raising the federal funds rate by more than 25 basis points at a meeting or meetings, we will do so. And if we determine that we need to tighten beyond common measures of neutral and into a more restrictive stance, we will do that as well.”
The Bitcoin inflow and outflows compared to price have been important to watch during this time where almost no assets seem to be a safe space to hide.
Other metrics show that more pain could be ahead in the short term.