Bitcoin Lower for Second Day as Price Slides Toward $40K

Crypto analysts are divided on lingering market impact of the Fed's rate hike.

AccessTimeIconMar 21, 2022 at 6:40 p.m. UTC
Updated May 11, 2023 at 3:34 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Bitcoin's price was lower for a second day in a row after jumping as high as $42,429 on Saturday.

  • Bitcoin (BTC) was changing hands at $41,088 as of press time, down 0.35% over the past 24 hours.
  • Heightened tension around the war in Ukraine pushed the market to mid- $40,000 on Sunday, GlobalBlock wrote in its Monday newsletter. Bitcoin's trading volume has remained at about 30,000 BTC per day since the Federal Reserve announced a 0.25 percentage point rate hike last Wednesday and has been down to fewer than 20,000 BTC per day since Sunday.
  • “Recent price moves may or may not be linked with the Fed rate hike after all," said Jason Deane, chief bitcoin analyst at Quantum Economics. "The U.S. is just one jurisdiction in what is a truly global market, so there are likely to be other factors.”
  • “The days of being able to link a particular action with a move in bitcoin price are over,” Deane said.
  • “Bitcoin is still looking for a clear catalyst as investors are concerned about the Fed’s more aggressive tightening policy in the coming month,” said Edward Moya, senior market analyst at Oanda. “With risk appetite on shaky ground, bitcoin might struggle to break above its recent consolidation pattern.”
  • Elsewhere in cryptocurrency markets, ether (ETH) was up 3.3% over the past 24 hours, and solana (SOL) was down 0.2%.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Angelique Chen

Angelique is a market contributor at CoinDesk.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.