Bitcoin down amid crypto carnival in Miami
News of officials planning to shrink the Fed’s balance sheet by US$95 billion a month weighed on risk assets globally including Bitcoin which dropped about 5% Thursday early morning Asia time.
See related article: Bitcoin, crypto market on the rise along with global markets
Fast facts
Bitcoin fell as much as 4.7% on sell off in risk assets following release of the minutes of the US Federal Reserve’s meeting in March.
BTC is now down 4.4% to US$43,278.07, after some bottom-buying by investors.
Other cryptocurrencies, including Ethereum, Terra, Binance Coin, Solana, mirrored Bitcoin’s movement, with Dogecoin down almost 12%.
These occasional downturns and rallies are of little significance for committed Bitcoin investors, Ben Caselin, the head of research and strategy at cryptocurrency exchange AAX, told Forkast.
“But for day and swing traders and in particular futures traders, the volatility and unpredictability of Bitcoin’s short-term price trajectory makes it a difficult asset to navigate,” he added.
While risk-assets such as Bitcoin “can be seen to stall” amid a liquidity squeeze, its overall fundamentals remain in good shape with “a shift in sentiment” leading to a quick price recovery, Caselin opined.
The moves come as Bitcoin 2022, the largest annual gathering of crypto enthusiasts, is underway in Miami, with its Mayor Francis Suarez calling for a “pro-Bitcoin” president to take office.
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