- Fed’s recent meeting and Powell’s stance influenced Bitcoin’s movement
Experts are also commenting on BTC’s volatility potential
As an experienced financial analyst, I believe the recent Federal Reserve (Fed) meeting and Jerome Powell’s stance have significantly influenced Bitcoin’s volatile price movements. The brief surge to $58,000 following the Fed statement was a testament to market reactions, but the subsequent drop suggests ongoing selling pressure.
The Federal Reserve’s latest monetary policy decision has drawn mixed reactions, with some praising and others criticizing the outcome. Notably, Chair Jerome Powell signaled that the Fed is not planning to increase interest rates in the near future.
Multiple industries experienced significant repercussions from this development, with Bitcoin [BTC] and the cryptocurrency market being particularly affected. After the Fed’s announcement, Bitcoin momentarily reached a peak of $58,000, only to plunge once more, highlighting persistent selling forces.
How are execs reacting?
In greater detail, Joe McCann, the founder, chief executive officer, and chief investment officer at Asymmetric, discussed this topic in a recent episode of “Unchained.”
The analysis of employment figures holds significant weight in deciding whether and when the Federal Reserve will begin reducing interest rates.
McCann pointed out the possibility of Bitcoin reaching its lowest point and undergoing a shift in market sentiment, significantly impacting risk assets and the U.S. dollar.
“During the Federal Reserve’s day, Bitcoin surpassed $59,000 for the first time but then experienced a significant decline. In my opinion, it’s likely that this price movement could signify a shift in investor sentiment towards risk.”
After that point, BTC has been making efforts to reach its peak price once more. Currently, the digital currency is valued at $62,372, marking a 1.5% increase in the previous 24 hours.
This implies that the second quarter of 2024 could represent a shift from Bitcoin’s exceptional performance during the first quarter of that year.
Elaborating on this thought, Alex Kruger said,
“His actions and words strongly indicate that he is not as focused on inflation as some market participants would prefer.”
Diverging viewpoints
As a crypto investor, I was taken aback by the surprising dovish tones from the U.S. Federal Reserve and the Quantitative Research Associates (QRA). Contrary to my expectations, they expressed more accommodative stances towards cryptocurrencies than previously indicated.
At the Federal Open Market Committee (FOMC) meeting, Powell indicated that the Federal Reserve does not intend to increase interest rates at this time and revealed a decrease in the pace of Quantitative Tightening (QT), from $60 billion monthly to $25 billion. In relation to Quantitative Research Account (QRA), the Treasury will maintain issuance of longer-term bonds, thereby allaying concerns about an increase in longer-term yields. This development is expected to weaken the US dollar’s rally, which would be beneficial for risk assets.
Way forward
To summarize, Kruger highlighted Bitcoin’s current autonomy by pointing out that contrasting recent years, Bitcoin has remained immune to influences such as geopolitical events involving Israel and Iran, as well as economic reports. As stated by the executive,
If you believe there’s a “Fed put” in place, this is advantageous because it indicates equities are less likely to crumble. Consequently, the chance of Bitcoin acting independently and experiencing an 80% decline becomes significantly reduced.
Read More
- SQR PREDICTION. SQR cryptocurrency
- DOGS PREDICTION. DOGS cryptocurrency
- METIS PREDICTION. METIS cryptocurrency
- CLOUD PREDICTION. CLOUD cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- KNINE PREDICTION. KNINE cryptocurrency
- EVA PREDICTION. EVA cryptocurrency
- TON PREDICTION. TON cryptocurrency
- HI PREDICTION. HI cryptocurrency
- UXLINK PREDICTION. UXLINK cryptocurrency
2024-05-10 13:11