A sudden Bitcoin price crash causes BTC to drop below $43,000 – the reason lies primarily with the Federal Reserve (FED).
Bitcoin (BTC) fell far short of the $100,000 target by the end of the year . Now the new year starts with a bigger setback. The main reason for this is a change in the interest rate strategy by the Federal Reserve (FED).
FED favors Bitcoin Price crash
The sudden fall in price is no coincidence. In addition to the general volatility in the crypto market, the publication of the minutes of the FED from the December meeting is primarily responsible for the Bitcoin price crash.
The FED's minutes show that the loose monetary policy to be changed. Interest rate hikes could be the result as early as March 2022.
Bitcoin is currently trading at $43,200. This corresponds to a loss of around seven percent within 24 hours. At times, however, the price had fallen to as low as $42,700.
Altcoins and stocks under pressure too
Ethereum is currently trading at around $3,467, while Solana is valued at $150.37 and Cardano at $1.22.
In addition, the change in the Fed’s interest rate policy has a direct impact on the stock market. This, too, has now come under pressure.
Bitcoin Price: What follows after the $43,000?
When it comes to Bitcoin price predictions, the spirits intersect. For 2021, many analysts had given a price target of at least $100,000. Most analysts have now not adjusted the target price but rather the point when it will be reached.
In the past few weeks and months, it has become apparent within the crypto market that individual sectors are further delimiting each other – recently, projects such as Polygon (MATIC) or Avalanche (AVAX) reached new highs, while Bitcoin made a clear sideways movement.
While news like the one from the FED clearly influences the course in the short term, this does not necessarily allow a long-term assessment. Such reports lead to a short-term pricing phase before possible price targets can then be given again based on predictions.