• Bitcoin slipped below $28,000 ahead of a highly anticipated FOMC meeting scheduled for tomorrow.
• Altcoins have suffered even more, with DOT, MATIC, SOL, and others dropping by up to 7-8% in the past day.
• The asset started to retrace after it briefly touched a 9-month high of $28,500 yesterday.
Bitcoin Slips Below $28K Ahead of FOMC Meeting
Bitcoin failed to maintain its upward trajectory after touching a nine-month high of $28,500 yesterday and has now slipped below $28,000 ahead of this week’s Federal Open Market Committee (FOMC) meeting. As a result of this development, the total cryptocurrency market cap has seen over $30 billion wiped off in just one day.
Altcoins Suffer Even More
The altcoin market has been hit even harder than bitcoin due to the recent price movements in BTC – some coins such as DOT, MATIC, and SOL have all dropped by up to 7-8% in the last 24 hours.
Retracement Before FOMC Meeting
The banking crisis that is currently taking place across the US and Europe appears to have triggered a surge in bitcoin’s price performance since it rose from around $20k to nearly touch its nine-month high at above $28k within just seven days. As investors await tomorrow’s highly anticipated FOMC meeting chaired by Jerome Powell which could potentially mean no further hikes on interest rates due to current banking issues; bitcoin has begun to retrace before said event takes place – dipping as low as $27.5k earlier today before recovering slightly back above the 28k mark.
BTC Fear & Greed Index Skyrockets
The BTC Fear & Greed Index also skyrocketed during this period and reached new peaks as investors anticipate what could be an important decision made by the FOMC chairman tomorrow regarding any potential changes or adjustments they may make on existing interest rates due to these banking issues that are currently facing both US and European markets alike.
Next Steps For BTC Price Performance?
With many investors having their eyes fixed on what happens at the next big event for this week; it remains uncertain how far bitcoin will continue its retracement following an impressive run over the past few days or if we will see new highs being reached depending on any future decisions made by Jerome Powell at tomorrow’s FOMC meeting.
• Ethereum’s price has found substantial support amid the $1450 price range.
• If ETH sustains this level, traders can expect another bullish leg toward the crucial resistance level of $1700K.
• ETH is likely to break out of the range in the coming days between the lower threshold at roughly $1410 and the static resistance region at $1500.
Ethereum Price Analysis
Despite the ongoing bearish sentiment among market participants following the recent turmoil of SVB bank and its effect on USDC, Ethereum’s price has found substantial support amid the $1450 price range. The upcoming days will be crucial to see whether ETH can hold the critical level or continue its negative sentiment.
By Shayan: After breaking above the upper trend-line of a symmetrical triangle and consolidating for an extended period, Ethereum’s price has declined and is now retesting a previous breakout level at $1450. If ETH sustains this level, traders can expect another bullish leg towards a critical resistance level of $1700K. However, if it drops below that trend line, a plunge towards a support level at around$1.200 may be imminent.
The price of ETH has been following an ascending channel (as shown below). However, it recently dropped below its middle equilibrium line resulting in a cascade. Nevertheless, it has now reached its lower boundary finding some temporary support. The price is ‘stuck’ in a tight range between a lower threshold at roughly $1410 and static resistance region at around$1500.
ETH is likely to break out of this range in the coming days which may determine if it continues on to reach higher resistances or falls back into previous lows.
< p > It remains yet to be seen which direction Ethereum will take from here but with strong supports in place it could indicate further positive developments ahead . p >
• Arthur Hayes, co-founder of BitMEX, published an essay outlining scenarios that could make oil prices rise and Bitcoin’s price skyrocket.
• He suggests that this could be caused by conflicts in the Middle East, reducing oil production from large producers or sabotaging key oil infrastructure.
• Hayes believes that a potential closure of the Strait of Hormuz by Iran would be most likely to happen and would cause a major decrease in global oil supply.
Arthur Hayes: Bitcoin Price Could Skyrocket During Potential Oil Crisis
Arthur Hayes, co-founder of BitMEX, published an essay on Thursday outlining “realistic potential situations” that could make oil prices boom and make Bitcoin’s price skyrocket as a result. In his blog post titled “Curve Ball,” he described three possible futures that could lead to an oil supply shortage across the globe given the current state of geopolitical tensions.
Potential Conflicts in Middle East
Hayes suggested that Iran could escalate its conflict with Israel/Saudi Arabia by closing the Strait of Hormuz – one of the world’s largest oil chokepoints between the Persian Gulf and the Gulf of Oman. Alternatively, large oil producers (Russia, Saudi Arabia etc.) could materially reduce their oil production or critical oil/gas infrastructure could be taken offline due to “deliberate sabotage.”
Most Likely Scenario
Hayes determined that a closure of the Strait by Iran would be most likely since its Uranium enrichment program has motivated Israel and Saudi Arabi to take military action against it. By closing down this chokepoint, Iran would remove a whopping 17.3 million barrels per day from global markets which would consequently make marginal cost per barrel extremely expensive.
Central Banks Forced To Loosen Monetary Policy
In this case scenario, Arthur Hayes argued that central banks across the world – including The Federal Reserve – will have no other option than returning to market friendly loose monetary policy in order to avoid economic recession or depression due to high energy prices from low global supply. This move is expected to benefit Bitcoin significantly as investors will seek alternative assets such as digital currencies during times where traditional financial instruments are not performing well due to inflation caused by central banks’ loose policies.
Given current geopolitical tensions in Middle East and potential scenarios outlined by Arthur Hayes in his article “Curve Ball”, it is very possible for us to witness an increase in global energy prices which might force central banks into loosening monetary policy thus creating an environment beneficial for bitcoin investment while being detrimental for traditional financial instruments due inflation driven by loose policies followed by central banks