BTC had an initial rise of 5% after the Federal Reserve announced that it would raise the benchmark interest rate in the United States by 1%. But the rise appeared to be short-lived as Bitcoin failed to break above the $40,000 resistance, causing it to drop to as low as $36,000.
Regarding the $39,600 barrier, M. Van de Poppe stated:
If this breaks to the upside, we may see a run to around +$40K again. If it doesn't speed south, we'll most likely see a waterfall further out." - M.V Poppe/Twitter. This is what we could observe in the opening of the American market.
Bitcoin (BTC) is the first digital asset with a dominance of 41.9% of the entire crypto market capitalization, according to data from CoinMarketCap. In addition, Bitcoin (BTC) is the reserve of most cryptocurrencies, so any strong movement in the mentioned cryptocurrency will cause the digital asset market to react.
Recall that the Central African Republic recently adopted Bitcoin and other cryptocurrencies to boost the economy in crisis, to which the officials of the International Monetary Fund (IMF) pronounced:
The adoption of Bitcoin as legal tender in C.A.R. raises major legal, transparency, and economic policy challenges. IMF staff are assisting the regional and Central African Republic’s authorities in addressing the concerns posed by the new law. - IMF
At the time of writing, Bitcoin (BTC) is trading at $37,080, however, there are still strong moves to be made.
Disclaimer: The information provided in this section does not represent investment advice.
Source: CoinMarketCap, Bloomberg, Twitter, EWN