Bitcoin clings to $22K as US dollar strength rises to December levels — What's next?
Bitcoin (BTC) fell to three-week lows on March 8 as stronger-than-expected employment data from the United States dampened risk assets.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dipping to $21,858 on Bitstamp.
The pair was attempting to preserve $22,000 as support at the time of writing, with traders’ downside targets still a way off at $21,300.
“Bitcoin not showing the strength I initially wanted to see (slight bounce yesterday taking place),” Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, summarized.
Fellow trading account Daan Crypto Trades meanwhile argued that volatility was due thanks to movements in Bitcoin futures markets.
“Massive bid depth on the Binance futures pair. Combined with quite the ramp up in Open Interest,” he revealed on the day.
Macro events offered mixed results when it came to moving crypto markets.
An appearance by Jerome Powell, Chair of the Federal Reserve, before the U.S. Congress the day prior failed to spark a reaction, but jobs data on the day sent the mood downhill.
“The expectations were 197K in employed people. The actual number is 242K, which is more positive than expected,” Van de Poppe wrote in part of comments on the day’s non-farm employment increases.
Such “hot” employment figures traditionally unsettle risk assets as they imply that the Fed has more leeway to keep financial conditions tighter for longer.
Estimates on how far the Fed would hike at the next meeting of its Federal Open Market Committee (FOMC) on March 22 evidenced the increasing uncertainty over declining inflation.
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Instead of 25 basis points as in February, the market
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