Claim $500Bitcoin (BTC) Reaction To Powell Speech, US Rate Hike Hardly Lasts Long; Here’s Why
Bitcoin (BTC) News: Considering the market’s confidence that the rate hike will further be slowed down this time to 25 bps, the crypto market reaction could go either way. In recent times, it has become a phenomenon for the crypto market to only adjust its momentum after digesting the outcome of the Fed’s rate hike announcement and the subsequent speech by the central bank’s chair Jerome Powell. Hence, it is advisable to wait and watch for a while after the Powell speech is finished before taking a Bitcoin position. This way, the market stabilizes by the time and the uncertainty is already priced in.
Also Read: US Fed Meet News Live Updates: Bitcoin (BTC) To Reach 25K or 21K?
The markets, both crypto and equities, could perhaps react the most to the way Fed goes about in its forecast on the future of interest rates. The traders would be closely watching out for any hints on the possibility of a ‘Fed pivot‘ within 2023. The Fed committee’s outlook on unemployment and inflation numbers will also be key.
Powell Speech: Bitcoin (BTC) Reaction
Whether the crypto prices would go up or down will only depend on Powell’s narrative and plan about controlling the inflation in coming months. This is considering the market consensus that the Fed will raise the rates by 0.25%, which will mark a slowdown after a series of 75 bps rate hike in 2022. A 25 bps rate rise would take the interest rate range to 4.50 to 4.75% range. The CME Fed Watch Tool is currently projecting a 99.3% confidence in a 25 bps rise.
Meanwhile, Bitcoin (BTC) price is displaying high volatility although it is trading in a small range around the $23,000 mark. As of writing, BTC price stands at $23,006, down 0.77% in the last 24 hours, according to CoinGape price tracker.
Also Read: Cathie Wood Revises Her Bitcoin (BTC) Price Prediction For 2030
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