Fed Turns Hawk to Brew Bitcoin Profit Taking Out of Bitcoin for 4th Straight Day Lower
Bitcoin fell for the fourth consecutive day and touched its 50-day moving average after the Federal Reserve Board (Fed) turned hawkish, cooling the cryptocurrency boom triggered by Trump's victory.
Bitcoin's 24-day price was around $93,959, about $14,000 below its all-time high on the 17th, and touched its 50-day average.Some see this as a reason to turn cautious.
Bitcoin's retest of this much-anticipated average represents a neutral bias for this fictitious currency in its consolidation phase, said Stanton, a technical analyst at Fairlead Strategies.
Bitcoin has moved lower six of the past seven days, and last week and was the first time since Trump's victory in early November that bitcoin closed in the black on a weekly basis.
The earlier rally took bitcoin to an unprecedented high of $108,244.9.Bitcoin has soared 125 percent this year, far outpacing traditional assets such as stocks and gold.
But the Fed cut interest rates by 1 yard on the 18th and signaled that it would only cut rates twice more in the coming year, down from its previous estimate of four, triggering a wave of profit-taking, with the U.S. Bitcoin ETF posting its highest-ever one-day blood loss on the 19th.
Trump has proposed the creation of a strategic reserve of bitcoin, and cryptocurrency-friendly Senator-elect Bernie Moreno (D-CA) has been nominated to serve on the Senate Banking Committee, among other things.The industry expects Trump's new cabinet to be dominated by cryptocurrency supporters, which will lead to a digital asset boom.