Bitcoin (BTC), along with other leading digital currencies, saw a decline recently, mirroring broader market apprehensions due to increased Treasury yields, which are at their highest since 2007.
The renowned cryptocurrency, Bitcoin, dipped below the US$29,000 mark, with industry experts suggesting further declines if market conditions worsen.
Ethereum’s native currency, Ether, also dropped, falling beneath the US$1,800 level.
Bitget’s analyst, Fernando Pereira, predicts Bitcoin might approach the US$25,600 zone if certain technical patterns break.
“BTC is nearing a pivotal technical point, and we could target the US$25,600 area, reflecting a 38.2% retracement of the entire 2023 rise,” he commented.
André Franco from MB Research believes prices might slump further, nearing the US$28,000 mark, noting that on-chain data doesn’t indicate significant shifts from long-term investors.
Recent comments from the Federal Reserve hinted at concerns over inflation levels, leading to speculations about another possible interest rate hike by the US central bank.
Bitcoin was down 2.1% over 24 hours at a specific timestamp, trading at US$28,501.12, while Ether declined by 2% to US$1,789.43, according to CoinGecko data.
The collective market capitalization of global cryptocurrencies stood at US$1.17 trillion.
Tasso Lago, a cryptocurrency expert, believes it’s more likely that the Fed will not raise interest rates further, considering the potential recession risks.
“The Fed’s current stance involves closely watching employment and inflation figures to ascertain the real impact of their ongoing monetary policy,” he added.