The world’s most valuable digital currency by market capitalization decreased to $28,010, according to CoinDesk data.
When explaining this latest activity, analyst Tim Enneking emphasized the key role played by the Federal Open Market Committee (FOMC), which has increased its benchmark federal funds rate by 475 points since March 2022.
“Although the correlation between crypto and fiat has generally weakened this year, major events still cause correlation and the pending FOMC decision has halted the upward movement of crypto,” he stated.
“That, plus regulatory uncertainty (the SEC and Bittrex, MICA), banking difficulties (Silvergate, Signature), and contagion fears (banking, commercial real estate) are all conspiring to create a retracement after what, for BTC especially, has been a major move up,” he said, highlighting several headwinds.