As the price of Bitcoin hovers just around $43,000, the cryptocurrency community is buzzing with expectation. This is due to the sideways price action following Federal Reserve commitment to decrease balance sheet. Bitcoin and Crypto Market Crash The price of bitcoin fell below $44,000 shortly after the Federal Reserve’s December FOMC meeting notes re-confirmed efforts to regulate the balance sheet. After minutes from the Federal Reserve’s December FOMC meeting revealed that the regulator is dedicated to reducing its balance sheet and hiking interest rates in 2022, Bitcoin (BTC) and the wider cryptocurrency market plummeted as stock markets pulled back at the closing bell. BTC’s price dropped to $43,000 as stock markets corrected. This triggered a wave of liquidations that totaled $222 million in less than an hour. The market in bloodbath. Source: Coin360 According to TradingView data, Bitcoin was struck by a wave of selling that pushed the price to an intraday low of $43,717 after bouncing around support near $46,000 for a few days. BTC/USD Crash to $43k. Source: TradingView It is expected that the Fed will begin raising its benchmark interest rate in March, “which would mean that balance sheet reduction could start before summer.” Related article | Altcoin Underdogs Outperform Bitcoin To Kick Off 2022 Rekt Capital Foreshadows Similarities The chart below was posted by crypto analyst and pseudonymous Re...
