Bitcoin: According to reports, the Fed is expected to raise interest rates at its meeting on July 26-27. If it raises interest rates by 0.75%, it will be the third rate hike this year. Bitcoin, Ethereum, SHIB and altcoin markets are also seeing a slight correction ahead of the meeting.
SHIB and altcoins prepare for FED meeting
These measures taken by the Fed affect all risky markets, including cryptocurrencies. However, this news has not impacted the crypto market at the moment as Bitcoin and Ethereum retrace the $22,000 and $1,500 levels. This, in turn, increases positivity among industry experts and investors who remain bullish.
Today, Binance CEO Changpeng Zhao, also known as CZ, shared his bullish perspective on Twitter. CZ says that as profitability in the crypto market increases, the focus should be on BUILD rather than HODL. He also adds that although several projects have failed, the number of investors and institutions continues to grow. CZ also claims that fundraising, investing, DeFi, NFT and other activities are also on the rise.
Fundamentals haven't changed.
Utility growing. Fundraise, invest, transfer, micro payment, remittance, DeFi, NFT, meta verse…
There are a few mismanaged/failed projects, a few sellers. Still net more users/institutions coming in.
— CZ 🔶 Binance (@cz_binance) July 23, 2022
To support the thoughts, CZ gave an example of 2000 dot com bubble bursts that did not affect the internet. In fact, this bubble burst allowed other companies to rise. In CZ’s words:
The fundamentals have not changed. The benefit is growing. Fundraising, investment, transfer, micropayment, remittance, DeFi, NFT, metaverse… Few mismanaged/failed projects, few vendors. More users/organizations are still coming to the net.
Analysts predict Bitcoin to hit $28,000
Other analysts such as Michael van de Poppe, Rekt Capital and Plan B are also optimistic about Bitcoin. According to his predictions, the price could rise above $23,800 especially if Bitcoin manages to stay above $22,800 and above the 200-WMA by the end of July. Analysts think that after this, Bitcoin will reclaim the $28,000 price level.
Data from Glassnode shows that 80% of Bitcoin’s circulating supply is in the hands of long-term holders. Long-term investors are considered “smart money” in Bitcoin markets. These investors are accumulating Bitcoin in markets under pressure. When the bull market starts, long-term investors are the ones who distribute the accumulated Bitcoin and take most of the profits. It seems that most of Bitcoin is in the hands of this investor class.
On the other hand, AmkNews.comAs you follow, Tesla announced that it has sold 75% of its BTCs. The company sold its $ 926 million BTCs at an average of $ 29,714. Meanwhile, Tesla says that the Bitcoin depreciation loss is affecting its profitability. Despite the loss, Musk says the electric car maker is still open to buying more Bitcoins in the future. At the same time, he implied that the sale of the company should not be taken as a “decision” on Bitcoin.
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