FX.co ★ Bitcoin: how the Fed meeting will affect the price this week

Bitcoin again broke through the support level near $19,000, formed by the July lows. But the breakdown turned out to be false, so there is still hope for a rollback and recovery. The closest resistance is at 20,700.

In the current situation, when risky assets remain under pressure from the Federal Reserve's rate hike, and there is a meeting on Wednesday, there is no question of cryptocurrency growth. What everyone cares about is whether the June lows in the 17,500 area will stay.

As for the outlook for the next few days, before the announcement of the results of the FOMC meeting, the market may be cautious, and an impulse surge in volatility is not ruled out on Wednesday evening.

And there further, albeit with less, nonetheless there is still attention, investors will follow the increase in the rate of the Bank of England and the Swiss National Bank, which, by the way, is tightening monetary policy for the first time in many years.

On this, with a short-term perspective, I propose to finish and look at the prospects more broadly and more globally. Let's see what the industry is talking about and how they assess the current state of affairs.

The US dollar is dying, buy bitcoin

Well-known investor and author of books on financial literacy such as Rich Dad Poor Dad Robert Kiyosaki tweeted several reasons to buy bitcoin.

One of them is that, in his opinion, "the US dollar is dying", bitcoin, silver, gold are relevant.

Kiyosaki argues that a chain of actions by the US government, including too much borrowing, rising inflation and a spike in interest rates, led to the death of the US currency. Therefore, in the future, bitcoin, gold and silver will increase significantly in price.

It is worth noting that in the past two years, the investor has been constantly talking about these three assets as key. On Saturday, Kiyosaki shared the same sentiment, stating that bitcoin is now more relevant than ever as real inflation rose by 16% rather than the claimed 7%.

In that tweet, he also said that US debt is skyrocketing and that the recent interest rate hike by the Fed would destroy the US economy.

In addition, Kiyosaki praises the programmed stability of BTC. This is one of the reasons why he took up investing in the main cryptocurrency. He mentioned the bitcoin halving, which happens every four years and cuts miners' rewards for solving computer problems by half.

Also, BTC has a fixed supply of 21 million coins, and it cannot be changed unless more than half of the miners agree to it, but they never agree.

Cryptocurrency has prospects despite the bear market

The head of Binance Labs, Yi He, believes that despite the bear market, the cryptocurrency space has prospects.

Yi He is the woman who helped found the Binance cryptocurrency exchange with Changpeng Zhao. She was recently named head of Binance Labs, the company's venture capital arm.

In a recent interview with Forkast, she stated that there are promising prospects in the bear market.

When asked about Binance Labs' bull and bear market investment strategies, she said:

"Usually we find out what we really want, whether we are in a bull market or a bear market. In a bear market, I think we should invest more aggressively, but not just for the sake of investing. There is a tendency in the investment industry to follow the herd, and many funds are concerned that they may miss a four- or five-year investment cycle."

She also spoke about the investment strategies of Binance Labs and how they differ from some of the venture capital firms in the web3 ecosystem.

"We all know this is a good investment opportunity in a bear market as many teams that just want to make a quick buck will be forced out of the industry. Now is the time to support those who really want to run a good business and believe in this industry."

It is worth noting that now Binance remains the world's leading cryptocurrency exchange with a daily trading volume of over $15 billion.

Such statements by major industry players are confirmed by previously published data that long-term bitcoin holders are not ready to sell their digital assets, despite the latest correction in the cryptocurrency market.

There is not such a linear correlation between them, but you can still notice some connection.