Bitcoin is testing critical support at its 200-day moving average near $74K as a hawkish Fed outlook and a stronger dollar weigh on the broader crypto market, which has fallen to $2.45T.
Bitcoin has fallen below $74K to its lowest level since August and is testing its 200-day moving average, with a break below likely to significantly extend the sell-off. A hawkish Fed path (possible 50-basis-point hike in December), large holders moving BTC to exchanges, and risk capital rotating toward AI are all weighing on price.
Higher-than-expected CPI data, strong US jobs figures and Waller's comments pointing to a possible 50-basis-point Fed rate hike in December triggered a rally in the dollar and a more hawkish policy outlook.
The article states that the dollar rally driven by hawkish Fed expectations hurts cryptocurrencies and precious metals alike, making lower gold prices more likely in the near term.
The cryptocurrency market capitalization has dropped over 1.5% to $2.45T, marking its lowest level since August. Bitcoin is currently testing its 200-day moving average near $74K, pressured by a rallying US dollar and a shift in risk capital toward AI stocks ahead of the Anthropic IPO.
A stronger dollar after strong US jobs data and comments opening the door to a 50-basis-point Fed rate hike in December, plus risk capital rotating into AI, have pushed Bitcoin below $74K to its lowest level since August.
The 200-day moving average near $74K. A break below it could significantly extend the sell-off, while merely holding the level is not enough for a bullish reversal - a strong upward move is needed.
Strong US jobs data and accelerating inflation, combined with Waller's comments that opened the door to a 50-basis-point Fed rate hike in December, triggered a dollar rally.
The article notes that the strong dollar and hawkish Fed backdrop, while not hurting equities much due to the strong economy, does hurt precious metals as well as cryptocurrencies.