The Allegation that the Fed Will Increase Rates Affected the Price of Bitcoin (BTC)!

The interest rate hike news from the Fed caused a slight regression in the crypto money markets. Based on data from Cointelegraph Markets Pro and TradingView BTC/USDIt showed that . However, BTC is currently trading just below $43,000.

The pair had returned to the top of its intraday range overnight after the Federal Reserve’s interest rate comments.

Expected to give clues about potential rate hikes Federal Open Market Committee (FOMC) The minutes of a meeting at the end of January finally yielded a few surprises. An interest rate hike may come in March, but no firm commitment has been made regarding the process.

“The committee aims to achieve maximum employment and inflation of 2 percent in the long term,” the statement said.

“To support these goals, the Committee decided to keep the target range for the federal funds rate between 0 and 1/4 percent. With inflation well above 2 percent and a strong labor market, the Committee hopes that a rate hike will be appropriate soon.”

The FOMC added that it aims to completely stop asset purchases in March, in line with previous plans, and that February purchases will amount to at least $30 billion.

Although the impact of a small number of new news has affected the crypto money markets today, the average of the last two weeks Bitcoin) price action helped keep the bullish outlook strong.

“My bias has changed a bit and now supports a squeeze towards 53k before mid-March,” said popular trader and analyst Pentoshi.

Other analysts similarly think that Bitcoin has recorded relatively strong price performance this month compared to previous episodes in its decline from all-time highs last November.

For example, jumping around $33,000 in January, a miner surrender event was successfully avoided, in which miners were forced to sell the hardware needed for mining or stop mining altogether because the Bitcoin spot price was lower than the production costs.

Support levels have been creeping up in recent days as buyers bet that a potential drop would be less shallow than previously anticipated, as reported by Cointelegraph.

On the other hand, stock futures fell at least 0.5% before the Wall Street open. Earlier, the US government stated that allegations that Russia is trying to reduce tensions on the Ukrainian border are not true.

“Yesterday, the Russian government said it would withdraw its troops from the Ukrainian border… Now we know that is not true,” a senior official quoted by the Financial Times on Wednesday said.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.

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