How Low Could Bitcoin (BTC) Price Drop Amid Stock Market Plunge?

Bitcoin (BTC) Price News: Following the Federal Reserve‘s remarks about its expectations on raising the interest rate, prospects for Bitcoin (BTC) Price look bleak. In the December FOMC meet that concluded earlier in the week, the U.S. Fed said it expects to continue increasing the rate. This led to a fall in stock prices as well as cryptocurrencies. Meanwhile, as the stock market continues to perform in bearish environment, it remains to be seen how BTC will respond going forward.

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In the recent quarters, BTC had increasingly displayed stronger correlation with the traditional markets. While the macroeconomic situation appears to maintain prolonged bearish trend for considerable future, the crypto market also has its share of troubles like the FTX related contagion.

Bitcoin (BTC) Price Prediction

On chain metrics point to a weak sentiment for BTC price in the near term. This is holding more strength after the announcement on rate hikes by the Fed. There have been high crypto liquidations this week, mainly owing to the criticism around Binance proof of reserves. Meanwhile, Jackis, a crypto trader, said the BTC chart for the week was looking weak.

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“The Bitcoin Weekly candle (still ongoing) is currently looking very weak. We were looking for a reclaim of 17,600$ but instead got a rejection there post FOMC.”

The top cryptocurrency is on a downward slide from the peak it reached ahead of the Fed rate hike announcement. With the central bank projecting a continued rate hike for a long time, the crypto market responded negatively. As of writing, BTC price stands at $17,016, down 3.93% in the last 24 hours, according to price tracking platform CoinMarketCap.

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