BTC/USD has a hard time climbing above $38,000. Warren Buffett’s recent ridicule of the number one cryptocurrency has made it even harder to maintain that resistance level. Bitcoin fell again on Tuesday, totaling 1.4% due to a decrease of more than 5% per week. The world’s leading cryptocurrency has taken over the rest of the cryptocurrency market. $1.83 trillion in market capitalization has fallen by 1% in the last 24 hours.
ETH/USD has shown its tendency to imitate its older brother. Accordingly, this also fell by 1% and more than 5% per week. The BTC price has reached around the $38,000 support level over the past week. This suggests that whales are bought at this price.
BTC whale is a crypto name that describes individuals who own huge bitcoin amounts. Whales have enough cryptocurrency that they have the potential to manipulate currency valuation. The price reduction came after the CEO of Berkshire Hathaway said on Saturday that Bitcoin does not produce anything.
Warren Buffett addressed the annual Berkshire Hathaway shareholders’ annual meeting. He said he did not know if prices would rise or fall next year in five or ten years. What is certain, however, is that BTC produces nothing. Currency has magic, and people have a lot to do with magic.
BTC and the Crypto Industry
The digital currency has also hit the vice president of Berkshire Hathaway. He says he tries to avoid stupidity, evil, and even makes him look bad, while Bitcoin meets all three criteria. Comments from Bitcoin supporters provoked an instant reaction. It is worth noting that the value of Bitcoin has not risen since the introduction of Tesla’s SEC, where the electric car builder said that BTC has “long-term potential” also is “a liquid option to cash.
Crypto-investors are focusing on the actions of Jerome Powell at this week’s U.S. Federal Reserve two-day meeting, which ends Wednesday. The Federal Reserve Bank of St. Louis CEO has warned that a 75 basis point rate hike should not be ruled out. The U.S. Federal Reserve is trying to slow down the country’s economy enough to control inflation, though not so much as to reduce recession.
The defensive sentiment was further intensified when the former vice-chairman of the Federal Reserve responded to expectations of rising rates. In his estimation, a recession is almost inevitable at this point. Traders expect the markets to react negatively if the Federal Reserve raises interest rates by more than 50 basis points. BTC is still strongly correlated with traditional markets.