The wave of anticipation that swept the crypto market in the run-up to Wednesday’s US Federal Reserve policy meeting may not have resulted in some seismic shift, but it has certainly given investors plenty to chew on. Much of the speculative focus was trained on Bitcoin’s trajectory, which has locked itself into a consolidation phase around the $29,300 mark.
Conclusion from this much-anticipated meeting was an expected 25 basis points (bps) increase in the policy rate. The federal funds rate slotting now between 5.25% and 5.5% has set a new precedent after 22 years. The Fed’s rate increase surfaced in response to June’s stagnation, giving nod to the necessity of inflation control back to a targeted 2%.
Now, let’s shift the spotlight toward potential implications on the digital gold –Bitcoin. Often, higher interest rates fan investors toward traditional assets at the expense of riskier investments like cryptocurrencies. This tendency, accelerated by the Fed’s recent monetary policy shifts to dampen inflation, could potentially observe a movement of preferences toward more stable assets. Such a move could apply short-term pressure on Bitcoin, resulting in a spectrum of predicted behaviours from mere fluctuations to a possible dip.
However, there’s another side to this Bitcoin. Amidst economic upheaval, it has consistently demonstrated its value as a hedge against inflation and secured position as a safe-haven asset. Foreseeing the immediate impacts of the recent rate hike, investors may pivot toward Bitcoin as a value store, potentially stabilizing its price or even providing growth impetus in the long haul.
Analysts currently perceive Bitcoin in a neutral sideways movement, with the market abiding by the proverbial “buy the rumour, sell the fact”. Despite the $29,550 resistance and the significant $30,000 psychological level, patterns such as the doji and spinning top candle above the $28,900 level suggest a potential bearish sentiment attenuation further fuelling a bullish trend.
Projections anticipate Bitcoin dance between $29,550 and $28,850. An upward leap past $29,550 could usher Bitcoin into the $30,200-$30,900 territory. Conversely, a descent below $28,850 might see Bitcoin headed for the $28,000 level. Considering the unpredictability quotient of market conditions, traders should make decisions based on comprehensive analyses.
In the fast-evolving digital asset landscape, it’s wise to stay informed. Our specially curated list of top 15 digital assets is a must for 2023. Keep in mind; the crypto market can tumble as quickly as it can soar; research before you dive in.
Cryptocurrency Price Tracker – Source: Cryptonews
Source: Cryptonews
