Bitcoin Braces for $88K as Fed Rate Hike Looms

The Federal Reserve's potential interest rate hike to combat high inflation has sparked concern among investors, with Bitcoin's short-term support level now focused on $88,000, according to Bitunix Analyst.

Bitcoin's price has been volatile, fluctuating around $89,211 with a daily high of $92,536 and a low of $86,015. The Federal Reserve's indication of a potential interest rate increase to address inflationary trends has raised concerns about investors withdrawing from risk assets, which could impact the price of cryptocurrencies like BTC.

Global supply chain issues and rising budget deficits are also contributing to market uncertainty. Analysts advise that if the price continues to decline, the short-term support level for BTC may be around $88,000. If there is a rebound, the upper resistance level is around $93,000. Investors are urged to closely monitor macroeconomic policy changes, operate with caution, and manage risks effectively.