After the recent cryptocurrency market correction, Bitcoin price has rebounded slightly. Most cryptocurrencies recorded losses. At the time of writing, BTC is attempting to break $48,000. However, it dropped from around $49,000 a few hours ago to $47,000.
Why has the Bitcoin price dropped?
The recent crypto market pullback wiped out $600 billion from the total cryptocurrency market cap. When it comes to the reason behind the recent bearish move, some cite the spread of the Omicron variant of Covid, others cite the Fed for proposing higher interest rates recently. With the spread of the Omicron variant across the US, the market action is reminiscent of the crash in July when information about the Delta variant of Covid spread.
While the crypto markets have rebounded slightly just days after the crash, market action is thought to be similar to what happened in July. According to experts, another reason for the bearish momentum this weekend could be that the Fed is deterring investors from investing their money in crypto and equities by raising interest rates.
cryptocoin.com As we reported, in November, Fed Chairman Jerome Powell announced that the Fed will begin scaling in purchasing Treasury bills and mortgage-backed securities. In addition to the above two factors influencing Bitcoin’s price, experts point to the House Committee’s announcement that crypto CEOs will testify at a crypto-related hearing on Dec. While this is not necessarily bearish news in itself, it is also thought that a potential increase in regulation after this meeting could hurt the crypto markets in general.
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