The Bitcoin price is struggling to recover after the Fed entered an aggressive tightening cycle
The price of Bitcoin plunged to an intraday low of $40,269 earlier today on the Bitstamp exchange.
The flagship cryptocurrency is down roughly 4% over the past 24 hours. It is now precariously close to retesting the $37,000 support level.
The U.S. dollar index (DYX) has rallied above 100 for the first time since May 2020 amid the U.S. Federal Reserve’s hiking cycle. The greenback’s ongoing rally highlights strong risk-off sentiment.
Goldman Sachs believes that the Fed will raise the benchmark interest rate by 50 basis points in May and in June in order to bring down inflation.
As reported by U.Today, former BitMEX CEO Arthur Hayes recently predicted that the price of Bitcoin could plunge to as low as $30,000 by the end of the second quarter, triggering a broader “crypto carnage.”
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