Eyes on the FED in Bitcoin! Can BTC Continue its Rally? Analysts Evaluated!

bitcoin and cryptocurrency market had a good start to January, with an increase of about 40%.

However, on this first day of February, eyes for Bitcoin and cryptocurrencies FEDConverted to .

BloombergInvestors need to maintain their optimism in crypto for the future in order for cryptocurrencies to stand strong against the FED’s monetary policy and interest rate decisions.

analysts BTC He says that the next big test for cryptocurrencies is the upcoming Fed’s monetary policy decisions and steps to be taken.

In January, there was a rally in asset classes such as cryptocurrencies and stocks, following expectations that the Fed will begin to reduce interest rate hikes and inflation will begin to decline.

Today, even though the Fed seems to be downshifting with a 25 basis point rate hike, Fed Chairman Jerome Powell may state that the policy will continue to be restrictive against low prices.

Evaluating the relationship between Bitcoin and the Fed, Vetle Lunde, senior analyst at Arcane Research, in a note bitcoinHe said that while it has shown a solid increase since the beginning of 2023, the same momentum cannot be expected to continue considering the general market conditions.

“The cryptocurrency market is overly optimistic about a quick Fed return.

Slowing bullish momentum, strong technical resistance and a hawkish FOMC prospects point to a weak February.”

Arcane said that in his analysis after the FED’s latest interest rate decision, he said that the FOMC-induced large fluctuation trend in BTC has decreased, but he emphasized that investors should still be cautious and be ready for anything when the FED chairman is speaking.

Jean-Marie Mognetti, CEO of Coinshares, said that the Fed’s downshift in the rate hike was in January. BTC and cryptocurrency He evaluated it as a macro impetus for the rally.