Bitcoin price drops to $43.7K after Fed minutes re-confirm plans to hike rates

Bitcoin (BTC), and the wider cryptocurrency market, fell below as equities markets pulled away at the closing bell. Minutes from the Federal Reserves December FOMC meeting revealed that the regulator is determined to decrease its balance sheet and increase interest rates in 2022.

BTC price fell below $44,000 as stock markets corrected. This triggered a series of liquidations that reached $222 millions in less than an hour.

Total liquidations. Source: Coinglass

Cointelegraph Markets Pro and TradingView data show that Bitcoin prices fluctuated around $46,000 over the past few days before hitting a wave selling that brought them to an intraday low at $43,717.

BTC/USDT 4-hour chart. TradingView

Given the current state of the economy, it is expected that the Fed will raise its benchmark interest rate in March. This would indicate that a balance sheet reduction could begin before summer.

Below is a list of crypto analysts opinions on the Bitcoin price drop and what might be in store for the coming weeks as the Feds easy money policies end and interest rates rise.

Capitulation looms below $44,000

Crypto analyst and pseudonymous Twitter User Rekt Capital posted this chart, which highlights the “many similarities” between the BTC range and May 20,21.

BTC/USD 1-week chart. Source: Twitter

Rekt Capital said,

Both saw BTC consolidate within two Bull Market EMAs (i.e. green 21-week EMA & blue 50 week EMA). A capitulation event may occur if BTC falls below the blue 50EMA.

BTC must reclaim $46,000

Analyst and contributor to Cointelegraph Michael van de Poppe posted this chart showing how BTC performed during last sharp market pullback.

BTC/USDT 4-hour chart. Source: Twitter

van de Poppe said,

“And the scenario for the drop below $46K is happening on Bitcoin here. Is it possible to hang on, take the liquidity and break back above $46K? The bottom is in that case.

If the price does not fall below $46,000, it could trigger a prolonged bear market that could see BTC return to the low $30,000 area.

Related: President Biden considers economists for Fed seats, as the nominations for leadership move to Senate. Report

The market situation was clearly illustrated in this chart by Nunya Bizniz, an options trader who is also a pseudonymous user on Twitter.

BTC price vs. RSI Source: Twitter

Nunya Bizniz said,

“BTC Monthly: The drops below the current RSI level were ugly. “This time?”

The total cryptocurrency market is now worth $2.123 trillion, and Bitcoins dominance rate of 39.4%.

com. You should do your research before making any investment or trading decision.