Federal Reserve’s plan to hike interest rates dropped BTC to $37k support

The renewed slump comes as the stock market and commodities also pulled back as a result of Federal Reserve Chair Jerome Powell’s comments related to future interest rate hikes and concerns over rising inflation which led to declines for both Bitcoin and gold. 

Both assets, Bitcoin and gold, responded negatively to Powell’s comments, there is a chance that the correlation seen between BTC and gold in 2019 could lead to a revival of the narrative that BTC has evolved into a safe haven asset.

Data from the leading crypto aggregator shows that BTC climbed from $38,200 in the early trading hours on Thursday to a high above $39,500 by midday before being down to a low of $37,365.

One signal provided ahead of Bitcoin’s price decline on June 17 was increased inflows to spot exchanges which led some analysts to speculate that traders who failed to cash out near the high are taking advantage of lower highs to lock in gains.

Read: The fresh Bitcoin hodlers are refusing to sell at $40K 

As the sell-off intensified, the netflow of BTC into exchanges saw a remarkable uptick but the selling pressure along with the lack of dip buyers kept Bitcoin pinned below $38,000.

At the time of writing, the overall cryptocurrency market cap stands at $1.582 trillion with 45% Bitcoin dominance and 17.4% of Ethereum, according to CoinMarketCap.