Bitcoin starts new year on the low on FED's rate hike fears

Like most other markets, Bitcoin had a rough start of the year, thanks to the anticipation of the Fed’s interest rate hike.

BTC opened last week at $47k, already looking precarious after once again slipping below the 25-day moving average. Following a period of low volatility, the selling resumed on Wednesday with the BTC price touching $42k. Over the weekend the price dipped to $40,501 and slightly bounced back. BTC closed the week with an 11% loss.

Meanwhile, alts on average did worse as BTC dominance edged up from 39% to 40%. Bot ETH and BNB finished last week with -17%.

Many smaller assets were hit even more, particularly from the Defi sector, including AAVE (-21%) and SUSHI (-21%). One of the few bright spots was LINK, which gained +25% yet still remains well below its earlier all-time high.

PAYPAL GOES FOR STABLECOIN

Despite the market calamities, big players have long-term plans for the crypto market. PayPal officially confirmed that they are “exploring” a USD-backed stablecoin after code with a “PayPal Coin” was found in their iOS app.

In October 2020, PayPal added crypto to its app and since then has built out a dedicated crypto business unit.

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