Bitcoin finally sees some relief after a start of 2022 with relentless selling pressure. The first crypto by market cap trades at $36,815 with a 9.6% profit in 24 hours. Related Reading | Bitcoin Supply Shock: Only 12% Of BTC Supply Is On Exchanges Now Bitcoin is moving towards a 1:1 correlation to the U.S. Stock Market, in the short term, according to Bloomberg Intelligence’s Senior Commodity Analyst Mike McGlone. The crypto market has been reacting to the potential shift in the U.S. Federal Reserve monetary policy. The financial institution has hinted at an increase in its interest rates to, at least, a 0.25% in 2022’s Q1 and a tapering of their asset purchase. The goal is to stop inflation as the CPI stands at a 40 year high. This has translated into a selloff which begun in Q4, 2021. In addition, investors seem to be trying to get ahead of a potential hike in interest rates, a thesis which could receive confirmation tomorrow during the FED’s Federal Open Market Committee (FOMC). If the institution hints a tougher shift, Bitcoin could retest its critical support level at $33,000. In expectation of this and other events, investors could be sitting in cash, waiting to bid on BTC when the economic outlook looks clearer. In other words, the demand is low for risk assets and could remain as such for the near future. Analyst John Nash believes the FOMC meeting is already priced in with a “too early” reversal in Bitcoin and o...
