Claim BonusBitcoin (BTC) Price May Have Bottomed Out, Here’s Why
Bitcoin price witnessed a correction after the Fed hiked interest rates by another 75 bps, but the BTC price held strongly over $20K. Interestingly, the BTC price has rallied two times from the $20,080 level in a week, making a double bottom.
Moreover, on-chain data indicates stablecoins inflowing into spot exchanges have reached a new all-time high. It suggests large investors and whales started moving money into stablecoins, a factor for the Bitcoin bottom.
Bitcoin (BTC) Price Awaits Rally Amid Stablecoins Flow
Stablecoins inflowing into spot exchanges has hit a new all-time high. This indeed is a good sign for the BTC price in a long term. However, it may cause the BTC price to show volatility in the short term.
Moreover, it suggests the BTC price will not go lower than the previous bottom near $18K. The increased volatility could cause Bitcoin to rally higher in the short term. However, placing either a long position or a short position on BTC remains risky at the moment.
Historically, large stablecoins movements have led to strong crypto market rallies. Large investors and whales have started pouring money back into stablecoins. In fact, the latest Santiment data indicated that Bitcoin whales are ready to jump back in and push prices to rise higher after a long bear market. Any increase in the market cap of stablecoins will justify a Bitcoin bottom.
According to crypto analyst Michael van de Poppe, Bitcoin price will remain bullish despite the Fed rate hike. The next level for BTC price should be $22.4K.
Fed Hints Slowdown in Rate Hikes
The Federal Reserve announced a 75 bps rate hike for the fourth time in a row. However, Chair Jerome Powell is dovish on the next rate hikes.
Meanwhile, the U.S. Dollar Index (DXY) continues to drive higher, up 0.65% at 112.08. Moreover, Wall Street banks expect traders to eye Treasury bonds as the Treasury Dept. is still undecided on bonds buyback plans.
At the time of writing, Bitcoin (BTC) and Ethereum (ETH) prices are trading at $20,314 and $1,548.
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Delivered every day.
- Insights that move markets
- 100,000 active subscribers
Related Articles
- Strategic Bitcoin Reserve: South Dakota Introduces Bill to Invest in BTC as U.S. States Explore Crypto
- Trump Speech in Iowa Today: Possible Impact on Stocks and Crypto Market
- XRP Payments Utility Expands as Ripple Launches Treasury Platform
- Trump’s Crypto Adviser Confirms Probe Into Alleged Theft From U.S. Crypto Reserve
- Federal Reserve to Hold Interest Rates Until June, Crypto Traders Predict
- Shiba Inu Price Outlook As SHIB Burn Rate Explodes 2800% in 24 Hours
- Pi Network Price Prediction as 134M Token Unlock in Jan 2026 Could Mark a New All-Time Low
- Bitcoin Price Outlook as US Dollar Index Hits 4-Year Low, Gold Soars
- Stock Market Today: Nasdaq, Dow, S&P 500 Futures Rise Ahead of Fed Meeting, and Jobless Claims
- Bitcoin And XRP Price Prediction Ahead of FOMC Meeting Tomorrow, Jan 28
- XRP Price Prediction as Ripple Scores Big Partnership in Cash-Rich Saudi Arabia
