Bitcoin awaiting the verdict of the US Federal Reserve: the crypto industry is in danger of falling

Bitcoin last week managed to gain a foothold in the price range of $ 42,000 – 44,000, it is also worth noting that the main benchmark of the crypto industry tested the maximum of January 2021, overcoming the value of $ 45,800. However, the situation changed on Thursday, February 10, after the release of data on inflation in the United States, which updated the maximum levels for 40 years, and at the same time, US stock indexes sharply adjusted. This had a negative impact, including on cryptocurrencies, which showed a significant correlation with other risky assets.

At the end of last week, the US Federal Reserve announced an unscheduled meeting to be held today, February 14. Following the meeting, the regulator may well raise rates without waiting for March. Moreover, it is even possible to double the increase by 0.50%. Tightening monetary policy could hit all risky assets, including the crypto industry.

In general, Bitcoin has grown by 1.6% over the past week.

Ethereum lost 5.1%, other leading altcoins from the top ten also mostly sank. The exception was the XRP token, which showed an increase of 20%.

The total capitalization of the crypto market, according to CoinGecko, decreased by 1.5% to $1.96 trillion over the week. The Bitcoin dominance index rose 1% to 40.7%.

Technical analysis:

Bitcoin is consolidating in the price range of $41,500 – 43,000, as market participants expect the most important statistical data, namely, we are talking about a possible increase in the key rate in the United States. If the rate is raised, then we should expect a breakdown of support at $ 41,500 and the development of an inertial downward movement with the disruption of stop orders. The movement may continue up to $39000-40000.

If the regulator does not take important decisions, then we should expect further accumulation of trading volume within the framework of this consolidation.

News and economic data:

The hashrate of the bitcoin network, on February 12, updated the historical maximum above 248 EH/s. The indicator indicates the strengthening of the blockchain’s position and the development of its infrastructure.

The head of the investment company ARK Invest, Katie Wood, actively sold bitcoin-backed shares of Grayscale Bitcoin Trust in February. Note that these securities were purchased in July last year, at the time of the reversal of the main benchmark upward.

The Central bank of Hungary has called on EU countries to ban cryptocurrency trading and mining. The Bank of Russia has announced its desire to reduce the involvement of citizens in the crypto market. The Ministry of Finance proposed to limit the list of cryptocurrencies traded in Russia.