Bitcoin Remains Under Pressure Ahead Of Crucial Fed Meeting By

© Reuters – Bitcoin remains in bad shape on Wednesday morning, after the cryptocurrency hit a new low earlier today at $20,763 ahead of a Fed meeting that could prove key to the move cryptos and markets in general.

Recall that Bitcoin has fallen sharply since Friday when it was still moving above $30,000, initially following an once again disappointing US CPI, which finally led the market to anticipate with certainty a Fed rate hike of 0.75% tonight, while the consensus was for a 0.5% rise ahead of the US CPI.

Developments specific to the cryptocurrency market have also affected Bitcoin, starting with the suspension of withdrawals and transactions on Celsius Network, a cryptocurrency lender which raises fears of a bankruptcy of the company and contagion effects, at least within of the cryptocurrency market.

Investors also worried about the creditworthiness of Three Arrow Capital, a major Singaporean cryptocurrency hedge fund, amid the crypto market rout, with rumors that the hedge fund failed to respond to a call from investors. margarine.

And the cryptic response of one of the founders of Three Arrow to these rumors did nothing to reassure. He indeed wrote on Twitter (NYSE:) “We are in the process of communicating with the parties accordingly and are committed to resolving this”:

Also of note, Coinbase (NASDAQ:) CEO Brian Armstrong announced on Tuesday that he had made a “difficult decision” to cut Coinbase’s workforce by approximately 18% due to an on-going economic recession.

“It looks like we are entering a regression after an economic boom of more than 10 years. A regression could lead to another crypto winter, and could last for an extended period of time,” Armstrong wrote, which added to the pessimism. ambient.

From now on, the fate of Bitcoin, and its ability to stay above the key threshold of $20,000 will therefore depend on the Fed meeting tonight, knowing that a rate hike of 0.75% could have a negative impact, while a rise limited to 0.50% would constitute a “dovish” surprise given current expectations, and could help to raise it.

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