Bitcoin price and others were off after hawkish remarks by Federal Reserve Governor Lael Brainard
On Tuesday, Bitcoin continued its recent restlessness, falling sharply after hawkish remarks by U.S. central bank Governor Lael Brainard and amid the latest surge of unsettling news from Ukraine. Other significant cryptos were similarly in the red, with DOGE and CELO the two significant outliers. The former rose over 17% at one point and the latter about 9%. At the time of writing, the Bitcoin price is changing hands at $45,246.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price, Ether fall slightly
Bitcoin, the largest cryptocurrency by market capitalization, was recently trading just below $46,000, down from a high earlier in the day above $47,000 and off about 1% over the past 24 hours.
Bitcoin price stabilizes after a 3% price drop during the New York trading day. The cryptocurrency has failed to break above resistance at $47,000 over the past few days, which indicates a loss of upside momentum. Still, lower support around $43,000 and $45,000 could stabilize the pullback.
Momentum signals remain negative on the daily chart, similar to in early February. However, bitcoin has broken above $43,000 with positive momentum on the weekly chart this time. That means buyers could remain active on pullbacks. The daily chart’s relative strength index (RSI) is declining from overbought levels, similar to last October. Still, overbought signals can persist for a few months before a significant downturn in price.
Ether’s second-largest crypto by market cap was changing hands at over $3,400, down roughly 1.5%.
“Bitcoin is seeing its 2nd largest ratio of transactions taken in profit vs. loss in the past five months today (2.64x more in profit). Also, Ethereum is having its 2nd largest in 4 months (3.03x more in profit). These high ratios foreshadow a correction”, Santiment reported.
Source: Santiment
Crypto prices dovetailed with major equity markets, which were largely off as investors considered additional interest rate hikes to curb inflation, which has soared to nearly 8% in the U.S. The tech-focused Nasdaq fell 2.2%, while the S&P 500 dropped 1.2%. In a speech at the Federal Reserve Bank of Minneapolis, Brainard called the reduction of inflation of “paramount importance.”
Other crypto news has been more upbeat. On Tuesday, MicroStrategy (MSTR) said it had acquired an additional 4,100 bitcoins worth about $190 million. The news came less than two weeks after Terra’s Luna foundation announced its commitment to purchase at least $3 billion in Bitcoin.
🤑 This may not be a major price drop with #Bitcoin down -1.3% over the past 24 hours. However, after quite a bit of #FOMO over the past 2 weeks, there is some major #buythedip optimism on social platforms. This is the largest crowd spike in 3 weeks. https://t.co/vMyQNwlQ6S pic.twitter.com/uYjjoEhLc7
— Santiment (@santimentfeed) April 5, 2022
In crypto markets, dogecoin (DOGE) rallied as much as 17% over the past 24 hours following Twitter’s (TWTR) announcement of Tesla (TSLA) CEO Elon Musk joining its board of directors. Meanwhile, SHIB, another dog-themed meme coin, was up 4% on Tuesday compared with a 13% decline in WAVES and flat performance in BTC over the same period.
The overall cryptocurrency market cap stands at $2.091 trillion, and Bitcoin’s dominance rate is 41.2%.
Read more:
- MicroStrategy Said It Bought Another 4,167 Bitcoin For Around $190.5 Million
- The Next 10 Days In Crypto May Decide Bitcoin Faith For The Next 2 Years