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.
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.
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.
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