Bitcoin Collapses 7% As FED Gets Hawkish, Why This Could Be A Buy The Dip Opportunity

Bitcoin records a 7% drop in the last week as yesterday’s Federal Open Market Committee (FOMC) hints at a more aggressive U.S. Federal Reserve. As investors reacted to a tougher monetary policy, selling pressure rejected BTC’s price from the mid area around its current levels. Related Reading | The Bitcoin Resistance Level That Just Won’t Budge At the time of writing, Bitcoin trades at $43,400 with a 3% loss in 24-hours and with potential to re-test more areas of support. Investment firm Cumberland believes the FOMC minutes were directly responsible for the BTC’s bearish price action. Part of a “broader risk-off move”, the announcement affected several sectors across the macro markets. Bitcoin’s recent weeks relief rally was triggered by the FED as well. Investors were expecting an increase in interest rates at around 25 bps. The financial institution announced this increase back in March meeting expectations. This provided more clarity to market participants. However, the FED turned more aggressive on its approach as a result of a persistent inflation. In that sense, the financial institution has forced market participants to adjust their views potentially shaking speculators from their positions. Cumberland said: At this point, one has to wonder whether the Brainard/FOMC commentary which triggered this move represents new & meaningful information that should be factored into the market in the form of lower prices, o...