On Wednesday, Bitcoin and several major altcoins saw a significant decline in value following the US central bank’s decision to pause interest rate hikes. Bitcoin fell below $25,000, marking its lowest level since mid-March, while Ether, ADA, SOL, and Matic all experienced notable drops in value. Ether fell over 3% to $1,650, hitting a three-month low, while ADA plunged more than 5%, and SOL and Matic each dropped over 4%.
Investors‘ skittishness can be attributed to several factors, including the SEC’s lawsuits against Binance and Coinbase, uncertainty regarding Fed monetary policy signals, and other macroeconomic concerns. Despite this, some analysts remain bullish. A price pattern called “throwback” has emerged on Bitcoin’s daily chart, which could signal a potential rally towards $37,000, according to Valkyrie Investments. A throwback is a price drop to a former breakout level or resistance-turned-support, which is typically followed by a surge in prices.
Markus Levin, the co-founder of XYO Network, is optimistic about the global macro setup, stating that Bitcoin and other digital assets have “likely already hit the bottom.” He expects sideways action in the coming months, with bouts of volatility before a potential surge after the BTC halving kicks in next year. Levin believes that the global macro setup is shifting significantly, with the rate-hike pause being the clearest indication of this shift. He notes that inflation is falling fast, and global central banks are injecting liquidity to stimulate their economies. The focus is now on growth and whether there will be a broad-based and deep recession.
Overall, while the markets have experienced a decline in value, some analysts remain optimistic about the future of digital assets and believe that a potential rally may occur in the coming months.
Source: Coindesk
