Breaking: Bitcoin price bleeds with ECB’s first rate hike in a decade

• Bitcoin price plummeted to $22,600 level as ECB raises interest rates by 0.5% for the first time in eleven years. 
• Bitcoin, Ethereum and altcoins nearly recouped their losses from the US CPI rate hike, now hit with ECB’s decision. 
• Analysts believe Bitcoin price could nosedive if it fails to climb above 200-week Moving Average. 

Bitcoin price slipped below $23,000 as the European Central Bank announced its first rate hike in eleven years. Rising inflation was the bank’s primary cause of concern, the move increased pressure on Bitcoin price. Analysts have predicted a steep decline in Bitcoin price, if the asset fails to make a comeback above 200-week Moving Average. 

Also read: Three reasons why Bitcoin price could witness a short squeeze

Bitcoin loses grip on $23,000 with ECB’s rate hike announcement

Bitcoin price suffered a decline below $23,000 as bears took over the reins. The European Central Bank’s rate hike announcement is the first of its kind in over a decade as the bank raises concerns of rising inflation. 

The hike of 50-basis points was higher than expected by analysts. This marks a significant move from the zero-interest rate environment nurtured by the EU since 2016. Experts predicted a 25-basis point hike, however soaring consumer prices over the past few weeks in the Eurozone is considered the cause for a 50-point hike. 

The ECB issued a statement:

The Governing Council judged that it is appropriate to take a larger first step on its policy rate normalization path than signaled at its previous meeting.

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