BTC Hovers Near Critical Support: Markets Wrap

The broader crypto market continues to experience bearish price action as the market prices in tighter monetary policy from the Fed

article-image

Blockworks Exclusive Art by axel rangel

share
  • Less accommodative Federal Reserve policy brings bearish price action to BTC
  • Market participants are now pricing in a high chance of three to four rate hikes in 2022

The market is now pricing in a good chance of three or four rate hikes in 2022.

Yields on government bonds have been soaring higher as the market expects a less accommodative US Federal Reserve.

The US dollar has shown strength over the past few months, a headwind for digital assets.

Latest in Macro:

  • S&P 500: 4,670, -0.14%
  • NASDAQ: 14,942, -0.05%
  • Gold: $1,801, +0.36%
  • WTI Crude Oil: $78.43, -0.60%
  • 10-Year Treasury: 1.755%, -0.014%

Latest in Crypto:

  • BTC: $41,737, -1.80%
  • ETH: $3,076, -3.80%
  • ETH/BTC: 0.0737, -1.98%
  • BTC.D: 40.91%, +1.36%

Tighter fiscal and monetary policy

Volatility has been in full force as of late with the market expecting three to four rate hikes by the end of 2022 and fewer asset purchases by the Fed in the face of higher inflation, which in theory would lead to less dollar liquidity.

Source: Bianco Research

The US 10-year TIPS yield surged last week, which could be bond market participants waking up to the reality that the Fed may be less accommodative in 2022.

Jim Bianco, President of Bianco Research, wrote, “Simply put, the bond market saw one of its worst weeks in history because bond market players finally ‘got it’ that the Fed is going to end liquidity. This kicked off a big the scramble to get out and not be the ‘bond bag holder’ when the Fed printer is turned off.”

Source: Bianco Research

“Meanwhile, growing expectations for higher rates + tighter liquidity conditions (coupled with a relatively strong economic outlook in the US vs. other regions) has helped breathe life back into the US dollar,” wrote Kevin Kelly, Co-Founder of Delphi Digital.

Source: Delphi Digital

BTC note

BTC dropped as low as $39,692 earlier today, according to data from CoinGecko. The aforementioned expectations of “tightening” by the Fed in conjunction with the inherent amount of leverage used in digital asset markets are likely to blame for the bearish price action.

Source: Delphi Digital

Billions of dollars of long positions have been liquidated since the December 4th crash, according to data from Coinglass.

Source: coinglass.com

NFTs

Trading data from OpenSea and Solanalysis of some of the top Solana and Ethereum projects can be found below:

If you made it this far, thanks for reading! I am looking forward to catching up tomorrow.


Get the day’s top crypto news and insights delivered to your inbox every evening. Subscribe to Blockworks’ free newsletter now.


Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template.png

Research

The march toward an interoperable and onchain-by-default internet depends on reliable messaging and value transfer across heterogeneous domains. Crosschain protocols now process >$1.3T in combined annual transfer volume and secure tens of millions of user interactions, yet no single design dominates.

article-image

The goal, per Santiago Santos, is to make crypto a relatable piece of tech for people who may not even understand it

article-image

Stripe stablecoin unit aims to operate under a federal charter enabling regulated stablecoin issuance and custody services

by Blockworks /
article-image

Will TradFi make crypto better or create more problems than it solves?

article-image

Subtle decisions by risk curators saved Aave from significant turmoil

article-image

The new Rootstock Institutional unit aims to connect professional investors to Bitcoin-native yield and liquidity strategies anchored in BTC’s security layer

by Blockworks /
article-image

DOJ files record civil forfeiture against more than 127,000 BTC linked to scam activity

by Blockworks /