Bitcoin price struggling to recover after Fed enters aggressive tightening cycle
The price of bitcoin fell to a low of $40,269 earlier today on the Bitstamp exchange.
The flagship cryptocurrency is down about 4% in the past 24 hours. It is now uncertainly closer to the $37,000 support level.
The US Dollar Index (DYX) has climbed above 100 for the first time since May 2020 amid a hiking cycle by the US Federal Reserve. The greenback’s ongoing rally highlights strong risk-off sentiment.
Goldman Sachs believes the Fed will increase the benchmark interest rate by 50 basis points in May and June to tame inflation.
As reported by U.Today, former BitMEX CEO Arthur Hayes recently predicted that the price of bitcoin could drop to as low as $30,000 by the end of the second quarter, triggering a widespread “crypto carnage.”