Why the Bitcoin Price is Dumping and Could it Get Worse
Bitcoin's price has risen by 1.5% in the past 24 hours, but has fallen by 4% in the last seven days. At $19,321, this represents a hefty 10.5% correction in the past 30 days, and given the expectation that the Federal Reserve -- and other central banks -- will continue raising interest rates, the original cryptocurrency likely has more pain in store.
With inflation high and the ongoing Ukraine-Russia war likely to continue pressuring oil and food prices upwards, this macroeconomic picture isn't likely to improve in the immediate future. However, some countries have posted data which have showed a slowing inflation rate, while Ukraine has made progress in recent weeks in recapturing parts of its territory previously occupied by Russian forces.
Most months so far in 2022 have brought declines for bitcoin, and so far, September is no exception. BTC is down by 55% over the year date, and despite a mini-surge to $22,500 in the run-up to the Merge, it has since fallen by 14%.
BTC's indicators show that it remains on a down cycle. In purely technical terms, it should rise again pretty soon, especially when it remains 72% down from its all-time high of $69,044.
Of course, indicators alone don't guarantee anything, and the economic situation still remains fairly negative. The Federal Reserve is due to announce its latest policy decision concerning rates today at 2 p.m. EDT (1800 GMT), and reports suggest that it will life its base rate by another 0.75%, taking the rate up to the 3%-3.25% range.
Tellingly, a 0.75% rise would take interest rates to their highest level since 2008, at the height of the financial crisis. And with inflation at 8.3% in the US and 9.1% in the EU, rates are likely to remain high for a while yet, putting
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