Bitcoin (BTC) slumped further on Wednesday ahead of a widely anticipated interest rate hike by the Federal Reserve later in the day.
BTC is trading at $21,200- down 4% in the past 24 hours. The world’s largest cryptocurrency has plummeted 30% since last week after a higher-than-expected U.S. inflation reading.
Focus now turns to how the token could react to a Fed rate hike later in the day. BTC had tumbled when the Fed raised rates in early-May, and likely faces a similar capitulation this time.
Technical indicators show BTC is primed to sink as low as $13,000 if this downtrend continues. Broader uncertainty over the crypto industry is also causing weakness in the token.
BTC should fear the Fed
BTC capitulated over 8% after the Fed raised rates on May 4. It then went on to slump another 28% to as low as $28,000 in the next week, as a crypto rout intensified.
