Bitcoin Price May Plummet to $70,000 if Support Level Fails

A recent analysis from Wintermute has highlighted the significant pressure on the crypto market due to rising U.S. inflation and interest rate expectations.

The market opinion states that Bitcoin failed to break through its 200-day moving average during its previous rally, indicating that the increase in price was driven by short covering rather than continuous inflows of new funds.

With the newly appointed Federal Reserve Chair taking office in three weeks, there are concerns about another rate hike. This has caused a shift in the pricing of the Federal Reserve's policy path, with investors now focusing on the possibility of higher interest rates.