Bitcoin’s price briefly dropped below $29,000 due to anticipated rate hikes from the Federal Reserve and European Central Bank. This article explores the potential impact of these rate hikes on Bitcoin’s price and its attractiveness as an inflation hedge. It also highlights the decrease in Bitcoin held by exchanges and the increase in reserves by miners, indicating a shrinking supply and potential bullish sentiment. Additionally, the data from Glassnode shows that long-term holders now control 75% of Bitcoin’s circulating supply, suggesting continued accumulation and weakening sell-side pressures.
Key Points:
– Bitcoin’s price dipped below $29,000 due to expected rate hikes from the Federal Reserve and European Central Bank.
– The rate decision statement from the Fed will be closely watched for any hawkish sentiments that could further impact Bitcoin’s price.
– Decrease in Bitcoin held by exchanges and increase in reserves by miners suggest a shrinking supply, potentially boosting Bitcoin’s price trajectory.
– Long-term holders now control 75% of Bitcoin’s circulating supply, indicating continued accumulation and weakening sell-side pressures.
– Despite the rate hikes, better-than-expected inflation numbers could result in a more positive outlook for the market and reinvigorate bullish sentiment.
Hot Take:
Bitcoin’s price is facing headwinds due to anticipated rate hikes, but the data suggests that miners and long-term holders are accumulating Bitcoin, potentially signaling bullish sentiment. While the rate hikes could challenge Bitcoin’s attractiveness as an inflation hedge, positive market outlook and strong demand could offset any downward pressure on its price. Overall, the market dynamics and accumulation among critical factions of Bitcoin holders indicate a positive long-term trajectory for the cryptocurrency.
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