The world's largest cryptocurrency Bitcoin (BTC) has reached a new high for 2023 and is approaching the $40,000 mark. At press time, Bitcoin is trading at $38,919, up 1.9%, with a market cap of $761 billion.
Fed indicates there will be no further rate hikes
On Friday, Federal Reserve Chairman Jerome Powell indicated that there would be no more interest rate hikes in the future. This comes against the backdrop of healthy economic data and easing inflation in the US. This has further paved the way for Bitcoin (BTC) price to reach $40,000, with some analysts expecting this to happen very soon. Furthermore, a Matrixport report also suggests that Bitcoin price could reach $60,000 before the next Bitcoin halving in April 2024.
On-chain data provider Santiment reported that Bitcoin (BTC) has almost reached $39,000 in response to US Federal Reserve Chairman Jerome Powell's announcement that he will maintain current interest rates. The increased focus on Bitcoin rather than alternative cryptocurrencies (altcoins) suggests a prevailing sense of fear in the market – an element often associated with sustained price increases.
Courtesy: Santiment
However, given the current macroeconomic scenario in the US and around the world, experienced investors like Robert Kiyosaki advise investors to accumulate Bitcoin as a hedge against the looming recession in 2024.
Furthermore, several market analysts are already predicting that rate cuts will begin in the first half of 2024. But in his speech on Friday, Powell warned: “It would be premature to conclude with confidence that we have reached a sufficiently restrictive stance” or to speculate about when policy might be eased. We are prepared to further tighten the policy if appropriate.”
Bitcoins are leaving the exchanges
According to data from Glassnode, over 37,000 BTC worth $1.4 billion have been withdrawn from exchanges since November 17, indicating that investors are tending to opt for direct custody of their coins.
This outflow suggests a preference for a long-term holding strategy, although Binance's recent admission of guilt may have some influence. The hold bias implies robust demand and easing selling pressure, particularly as excitement grows around the expected launch of a spot exchange-traded fund (ETF) in the United States.
Courtesy: Glassnode
Historically, foreign exchange outflows have coincided with local price lows, consistent with expectations of medium-term price increases.
Momentum for Bitcoin gained steam late Tuesday after Federal Reserve Governor Chris Waller noted that recent data pointed to an economic slowdown. He suggested that proper policy positioning should contribute to positive sentiment around Bitcoin.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.