- Bitcoin price plummeted to $22,600 level as ECB raises interest rates by 0.5% for the first time in eleven years.
- Bitcoin, Ethereum and altcoins nearly recouped their losses from the US CPI rate hike, now hit with ECB’s decision.
- Analysts believe Bitcoin price could nosedive if it fails to climb above 200-week Moving Average.
Bitcoin price slipped below $23,000 as the European Central Bank announced its first rate hike in eleven years. Rising inflation was the bank’s primary cause of concern, the move increased pressure on Bitcoin price. Analysts have predicted a steep decline in Bitcoin price, if the asset fails to make a comeback above 200-week Moving Average.
Also read: Three reasons why Bitcoin price could witness a short squeeze
Bitcoin loses grip on $23,000 with ECB’s rate hike announcement
Bitcoin price suffered a decline below $23,000 as bears took over the reins. The European Central Bank’s rate hike announcement is the first of its kind in over a decade as the bank raises concerns of rising inflation.
The hike of 50-basis points was higher than expected by analysts. This marks a significant move from the zero-interest rate environment nurtured by the EU since 2016. Experts predicted a 25-basis point hike, however soaring consumer prices over the past few weeks in the Eurozone is considered the cause for a 50-point hike.
The ECB issued a statement:
The Governing Council judged that it is appropriate to take a larger first step on its policy rate normalization path than signaled at its previous meeting.
The ECB will work on further normalization of interest rates at the Governing Council’s upcoming meetings. The move away from negative interest rates allowed the council to make a key transition to a meeting-by-meeting approach to interest rate decisions.
Ahead of the ECB rate hike announcement, the crypto market witnessed a bloodbath. Bitcoin, Ethereum and cryptocurrencies in the top 30 wiped out their losses from the past week. Investors turned cautious and pulled out of volatile markets, including crypto. It is important to note that the impact may be of a temporary nature as Bitcoin, Ethereum and cryptocurrencies recovered from the US CPI rate hike announcement within 48 hours.
Euro Area Interest Rate
Bitcoin price is at risk of further decline
Analysts at FXStreet evaluated the Bitcoin price trend and predicted further decline in the asset. If BTC fails to recover above 200-week Moving Average, Bitcoin could continue its downtrend. For more information and key price levels, check this video:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
SEC doubles down on TRON's Justin Sun lawsuit dismissing claims over jurisdiction
The SEC says it has jurisdiction to bring Justin Sun to court as he traveled extensively to the US. Sun asked to dismiss the suit, arguing that the SEC was targeting actions taken outside the US.
XRP fails to break past $0.50, posting 20% weekly losses
XRP trades range-bound below $0.50 for a sixth consecutive day, accumulating 20% losses in the last seven days. Ripple is expected to file its response to the SEC’s remedies-related opening brief by April 22.
ImmutableX extends recovery despite $69 million IMX token unlock
ImmutableX unlocked 34.19 million IMX tokens worth over $69 million early on Friday. IMX circulating supply increased over 2% following the unlock. The Layer 2 blockchain token’s price added nearly 3% to its value on April 19.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?