• The Federal Bank’s announcement of a 25 base points increase in interest rate has caused Bitcoin to drop.
• Despite this, Bitcoin has risen about 22% this month and more than 65% since January 1.
• BTC is trading at about $27,470, down by around 2.06% in the last 24 hours and its next target may be the $30,000 price range.
Bitcoin Price Drop Following Interest Rate Increase
The Federal Bank recently announced a 25 base points increase in interest rate which caused Bitcoin (BTC) to drop from its trading price of above $28,000 to below $27,000 on March 23rd. However, despite this decline BTC still managed to rise about 22% this month and more than 65% since January 1st.
Current Market Conditions
At the time of writing BTC is trading at about $27,470 which is down by around 2.06% in the last 24 hours. This leveler represents a retreat from its loftier near $28,000. Furthermore, the global crypto market cap has also declined by 1.74% over the last 24 hours with a market cap of 1.15 Trillion according to CoinMarketCap.
Volatility and Fear Surrounding Bitcoin
The current growth of Bitcoin is impressive but it is marked by extreme volatility which calls for caution for extremely bullish projections due to fear surrounding Federal monetary policy, increased regulatory activity and banking unrest.
Potential Rebound of Bullish Momentum
The future price movement of BTC depends on whether there are any new events that may accelerate selloff or trigger potential pivot as if the latter occurs then it may regain bullish momentum and its major next target might be the 30K price range.
Overall despite some recent price drops due to an increase in interest rates Bitcoin continues to remain a safe and dependable alternative for investors who are looking for an alternative financial system outside traditional banking institutions