The creators of one of the top on-chain analytics firms in the crypto space are weighing in on Bitcoin (BTC) after the Federal Reserve issued another interest rate hike.

In Glassnode’s latest newsletter, Jan Happel and Yann Allemann say that Bitcoin is trading below $20,000 due to “intense pressure” brought about by a fresh rate hike to the tune of 75 basis points (bps).

According to Happel and Allemann, the Fed’s hawkish stance is overshadowing fundamental developments in the crypto space, driving Bitcoin to face increased risk coupled with bearish momentum.

“Both the monetary policy and regulatory fronts are offering nothing other than headwinds to crypto.”

On top of an unfavorable macro backdrop, the Glassnode co-founders also say that BTC’s rising volume amid a bearish trend could portend more for pain for Bitcoin holders.

“Whenever spot volume backs a downward trend, it tends to extend into the near future, and a reversion requires substantial buying pressure.”

The duo also highlights that traders and speculators are showing signs that they are not optimistic about the prospects of BTC.

“The futures-to-spot volume ratio is well below one, and since the 50 bps surprise rate hike in June, it has trended downward steadily. This development indicates less confidence and speculation in the system.”

Overall, the Glassnode executives predict that Bitcoin will continue to trade in a wide range within a bearish environment.

“According to J. Powell’s remarks, a subsequent 75 bps rate hike, previous FOMC (Federal Open Market Committee) weeks, and the state of the system, Bitcoin likely continues to trade in the $17,000-$25,0000 trading range. Even though the spot market saw an uptick in traded volume, the options and futures market denoted selling pressure amidst a high-risk and bearish regime.” 

At time of writing, Bitcoin is swapping hands for $19,033, down over 1% on the day.

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