The dovish signals of the US Federal Reserve (FED) brought to mind the 300% rise in Bitcoin (BTC) in 2019.
Dovish comments from FED officials on Bitcoin 2019 It reminded me of the huge rise that took place in 2017. Continuing Palestine – Israel Names who spoke positively despite the war: Atlanta FED President Raphael Bostic and Minneapolis Fed Neel Kashkari happened.
Officials say further interest rate hikes may not be necessary and that the tightening policy will end Talking about the rising days that may come after a long period of stagnation started to be talked about again.
While the statements that there will be no need to raise interest rates further give hope to the markets, the rising US treasury yields It was presented as a factor that would prevent the FED from increasing interest rates further.
FED’s interest rate 3-year interest cycle December 2018It peaked in and with 2.5% points He had seen the peak. Bitcoin in those days $3,200 bottom While it was hovering around the level, when the interest rate increase ended and it entered a pause period, 325% It increased around . Then, the FED stopped increasing interest rates and adopted a dovish policy, causing the Bitcoin price to increase by 325%. $3,300 from level for $14,000 resulted in an increase of .
Making a statement on the subject Markus Thielenmade the following comparison between 2019 and today:
Going back to 2019, the Fed completed its rate hike cycle and entered a seven-month pause. During this time, Bitcoin experienced a dramatic price rally, rising an impressive 325%. In our view, it is highly likely that the Fed will end its rate hike cycle soon. The most critical macroeconomic factor at the moment appears to be a reflection of the situation in 2019, when the FED paused interest rate hikes, leading to a significant increase in Bitcoin prices.