Bitcoin Falls Again Ahead of FOMC Meeting

According to one analyst, the S&P 500 stock index data repeats the same movements as before the 2008 Global Financial Crisis.

Bitcoin (BTC) hit weekly lows with the August 17 Wall Street opening, just before the Federal Open Markets Committee (FOMC) released the minutes of its latest meeting.

Dollar Climbs Due to FED's Minutes

According to data from Cointelegraph Markets and TradingView, BTC/USD is down more than 2% on a daily basis after hitting $23,352 on Bitstampt.

Already showing signs of weakness, BTC fell even lower hours before the FOMC released the minutes of its last meeting and as US stocks began trading.

Although the meeting does not include a decision on interest rates, it contains hints to give an idea to the markets about the next rate change of the FED to be made in September.

"The FOMC minutes are the highlight of the day," said Cointelegraph columnist Michaël van de Poppe in a recent Twitter post, where information about whether the Fed will tend to raise or lower interest rates.

Justin Bennett, founder of crypto education platform Crypto Academy, warned that the S&P 500 stock index is repeating its behavior just before the 2008 Global Financial Crisis.

Bennett said, “This is mind-blowing. The S&P 500 stock index follows the same chart as it did in the 2008 crash. Even the timing is almost the same since the all-time high (ATH).”

The US dollar index (DXY), which tried to show resistance throughout August, started to show bullish signs during the day.

Commenting on this issue, Bennett said, “DXY may rise towards 112-113 levels after falling below 105. This will put a weight on stocks and crypto,” he said.

Buyers Eyes on Lower Levels

Price support has dragged the Binance order book down for shorter timeframes, while the trend in Bitcoin has resulted in a rapid loss of strength.

On-chain tracking resource Material Indicators (MI) commented, “While we are seeing some gains, we have little confidence that the current rally will hold its strength.”

“The 100-day moving average could meet the upside target,” MI said, in another post at the time of writing.

“For Bitcoin, I've been warning about this for the past few days,” commenter Matthew Hyland said.