BTC is currently holding the $20,000 mark, but buyer interest is waning. Another fall is imminent
2 min readBTC holds its position close to the $20,000 level. However, according to analysts, negative actions by the FED will come, which predisposes the largest cryptocurrency to further decline.
BTC may fall again
Most analysts hold opinion, that in the case of BTC we should prepare for further decline in the short term. Expectations should be the deciding factor statements of the FED. Popular analyst Philip Swift said on his twitter that the mood among investors is not very positive. This is also evidenced by the greed and fear index found in the zone “extreme fear”.
According to the company Delphi Digital however, interest in BTC trading has increased.
“The ratio of open interest in BTC futures reached the highest level on record, more than 3% of the BTC market cap, following the collapse of the entire market on August 26. Higher values indicate that open interest is really large relative to the size of the market. We have a real threat of sales and liquidations,” Delphi Digital said in a report.
Open interest in BTC. Source: Delphi Digital / Glassnode
The FED will decide again
President of the Federal Reserve System in Cleveland Lorretta Mester stated that it expects further increases in interest rates up to the limit of 4%. This factor may cause further sell-off in both the stock and index markets. We know from the past that BTC shows with these markets strong correlation.
So it will be no surprise if BTC drops to new lows again. At the time of writing this article, its price was hovering at the level $20,078.
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