Fed threatens rate hikes and crypto funding cracks — short Bitcoin down to $60k
Bitcoin is sliding toward $60,000 as the new Federal Reserve chairman warns he won't tolerate high inflation and might raise interest rates. At the same time, a major corporate bitcoin buyer's funding strategy appears to be unraveling, adding heavy selling pressure.
Idea
When the Federal Reserve talks about raising interest rates, investors tend to dump riskier, speculative assets like cryptocurrencies because safe government bonds suddenly offer better returns. On top of that broad market pressure, reports that a famous corporate bitcoin buyer's funding model is under stress are scaring traders into selling. With both macroeconomic headwinds and company-specific negative news hitting at the same time, the path of least resistance for Bitcoin right now appears to be downward.