Bitcoin (BTC) is hovering around $27,000. On the other hand, the cryptocurrency community is showing significant resilience as it remains hopeful that it can surpass $28,000. This optimism continues despite the Federal Reserve’s recent hawkish statements.
Bitcoin and the Federal Reserve’s surprising move
The US Federal Reserve’s announcement that it plans to keep interest rates above 5% in 2024, contrary to expectations of 4.3%, caught many people off guard. The central bank stated that this decision was necessary to “return inflation to 2% over time”. Historically, Bitcoin and other cryptocurrencies rise following interest rate cuts.
On the other hand, Bitcoin and altcoins decline during monetary contractions. However, the market’s reaction to the Fed’s interest rate hike plan was relatively mild. Moreover, prices fell by only 1% in the following hours. After a brief decline, BTC quickly recovered to $26,900. Analysts are now predicting a march towards $28,000, showing resilience in the face of the Fed’s decision.
Caution amidst optimism
While optimism is high, some analysts recommend a cautious approach. They note that higher interest rates and a possible stock market downturn “may not bode well for Bitcoin.” Moreover, despite the current buying support, profit taking is expected especially among traders in the coming days.
“It’s difficult for us to greet today’s announcement with too much optimism,” said Michael Silberberg, a manager at AltTab Capital. “It was a surprise that the report emphasized slower interest rate cuts than previously anticipated.” says.
Global central bank decisions
Investors closely follow the interest rate decisions of central banks in important economies such as England, Switzerland and Japan. These decisions can significantly affect investor sentiment in the Bitcoin and cryptocurrency markets. “All financial markets have adopted a wait-and-see approach ahead of monetary policy decisions in the US, Switzerland, UK and Japan,” comments Alex Kuptsikevich, an analyst at FxPro.
Some on-chain analysts are less optimistic about Bitcoin’s technical indicators. It also encourages investors to rely more on fundamentals for direction. Many are banking on Bitcoin BTC’s historical seasonality in hopes of a strong fourth quarter bull run. Also on the horizon is the U.S. Securities and Exchange Commission’s expectation of a price increase through a spot-based Bitcoin ETF.
A fierce battle in the Bitcoin market
When we look at Kriptokoin.com, Bitcoin maintains its place despite the unexpected move of the Federal Reserve and mixed technical indicators. The cryptocurrency market remains a complex battleground where macroeconomic factors, central bank decisions, and investor sentiment play important roles in determining BTC’s future trajectory. Bitcoin continues its journey. On the other hand, the cryptocurrency community is watching all developments with bated breath. They are also ready to respond to new developments in this dynamic environment.
To be informed about the latest developments, follow us Twitter’in, Facebookin and InstagramFollow on . Telegram And YouTube Join our channel.