Bitcoin and cryptocurrency prices have fallen along with stock markets this year as investors brace for a more hawkish Federal Reserve
The bitcoin price has lost around 40% from its peak of almost $70,000 per bitcoin late last year
other major coin including Ethereum, Binance, Ripple, Solana price also down by nearly half
Now, after Federal Reserve chair Jerome Powell signaled a half percentage point interest rate hike is on the table at next week's meeting
the market is braced for the central bank to begin shrinking its huge $9 trillion asset portfolio as it battles soaring inflation.
Joe Haggenmiller, head of markets at leading crypto finance company XBTO Group, said in emailed comments
"Macro uncertainty has driven all risk-on assets downwards over the last few months, including bitcoin,".
Marcus Sotiriou, an analyst at the U.K.-based digital asset broker Global Block, wrote in an emailed note
"This is bullish for risk assets like bitcoin and equities in my opinion, as the Federal Reserve may become less hawkish to avoid a recession"
Bitcoin, crypto and stock market traders are watching carefully for any sign the Fed will stray from its telegraphed move when it meets this week.