This week’s sharp increase in inflation and Federal Reserve interest rate increases triggered a sell-off in the cryptocurrency market. Bitcoin(BTC)‘s price remained unchanged yesterday, hovering just above $20,000.
Despite the fact that Bitcoin as a whole is declining, it is still fluctuating wildly and has even bounced slightly today. Bitcoin is up 10% from its lows, and hodlers are taking a breather as markets digest the prospect of more Fed rate hikes. However, traders are skeptical that Bitcoin has reached bottom. Bitcoin’s future remains uncertain.
Is It the Bitcoin “Bottom”?
The emphasis of global financial markets was completely on the United States Federal Reserve and its decision to raise interest rates by 75 basis points on June 15, the greatest rise in 28 years, as the central bank fought to contain the highest inflation rates in over four decades.
According to data from Cointelegraph Markets Pro and TradingView, Bitcoin (BTC) and the broader cryptocurrency market were under pressure in the early trading hours of June 15 as rumors of the potential collapse of Three Arrows Capital (3AC) spread throughout the ecosystem, which is still dealing with the ongoing Celsius debacle.
6.15 Daily cryptocurrency market performance. Source: Coin360
The attention of global financial markets was fully on the United States Federal Reserve. Following Federal Reserve Chair Jerome Powell’s announcement of a 75 basis point raise, the price of Bitcoin momentarily soared to $22,245 before falling down to $21,500.
Why Does Bitcoin Price Climb to $22.2K?
Commentators said the renewed market strength was due to the majority already pricing in large key rate hikes by the Federal Reserve, which were expected to be confirmed later that day.
Following Federal Reserve Chair Jerome Powell’s announcement of a 75 basis point hike, the price of Bitcoin briefly spiked to $22,245 before falling back to $21,500.
The rate hike, which was widely anticipated, appears to have been priced into the crypto market, as prices remained relatively flat following the announcement, and more crypto-specific developments are currently dominating the sector’s headlines.
What Will Bitcoin’s Short-term Trend Be Like?
In spite of the nominal gains, Bitcoin’s future remains unpopular among experts and is likely to remain volatile. Billionaire Mike Novogratz, founder, chairman, and CEO of digital asset merchant bank Galaxy Digital Holdings, told a Morgan Stanley conference on Monday that cryptocurrencies may be nearing a bottom, with Ether (ETH) likely to remain about $1,000 and Bitcoin (BTC) at roughly $20,000 to $21,000. Crypto would reach bottom sooner than US stocks, which might fall another 15% to 20%, he predicted: “Ethereum should hold around $1,000 and it’s $1,200 right now. Bitcoin is around $20,000, $21,000 and it is $23,000, so you are much closer to the bottom in crypto than you are where I think stocks are going to have another 15% to 20% decline.”
The Golden Time to Profit Taking Advantage of Volatility
Despite the visible downward trend ahead, the Bitcoin market will remain volatile for some time to come. However, using the right investment method can make volatility a powerful tool for profit. BTC futures trading enables traders to long or short BTC, so traders can earn money as long as their predictions are right. While spot traders only earn profits when the price of bitcoin goes up. Furthermore, traders can borrow leverage from exchanges to increase their buying power, thus multiplying their profits.
The Best Tool for Earning in the Market Fluctuations
Since Bitcoin is still in the process of declining in general but wildly fluctuating in the short term, taking advantage of volatility and making profit with a 100x leverage tool would be a good choice. Now, the Bexplus cryptocurrency exchange currently provides 100x leverage for investors to make more profit on small trades. Learn more about Bexplus 100x leverage below.
More Profits with 100x Leverage & 100% Deposit Bonus
Bexplus offers a 100x leverage tool so that traders can open a position with only a 1% margin required. Take an example, a trader opens a long position of 100 BTC at the price of $20,000 with Bexplus 100x leverage. Then, the price goes up to $22,000. As a result, he will make a profit of ($22,000 – $20,000) * 100 BTC/$22,000 *100% = 9.09 BTC. However, the margin he needs to prepare is only 1 BTC. That makes 909% ROI in total.
To welcome our new users and thank our regular users, each user is eligible to apply for the 100% deposit bonus. Now, with Bexplus’ 100% bonus, our initial investment would be 2 BTC, and our realized profit made with these 2 BTC will be 18.18 BTC, and the ROI will also be doubled to 1818%. That’s how traders make more profit with the 100x leverage tool provided by Bexplus.
Bexplus: A Recommended 100x Leverage Futures Exchange
Bexplus is a leading crypto derivatives trading platform offering 100x leverage futures trading on various trading pairs: BTC, ETH, ADA, DOGE, XRP, etc. Bexplus is popular among over two million traders from over 200 countries/regions. In addition, it is safe for being accredited by U.S. MSB (Money Services Business). Furthermore, It also boasts of the following features:
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