FED Announcement Pushes Bitcoin Price Up, Will BTC Sustain Momentum?

Market expectations were met arsenic the U.S. Federal Reserve (FED) announced an involvement complaint hike of 25 bps pushing Bitcoin into the green. The cryptocurrency was hinting astatine bullish terms enactment during the week, arsenic today’s Federal Open Market Committee (FOMC) closed in.

Related Reading | Mike Novogratz: Bitcoin Price To Range Between $30k-$50k Throughout The Year

At the clip of writing, Bitcoin trades astatine $41,300 with 5% profits connected the past day. BTC’s terms was capable to interruption supra this terms constituent aft a little play of volatility arsenic FED Chair Jerome Powell began its intervention.

BTC records flimsy gains station involvement rates summation from the U.S. FED. Source: BTCUSD Tradingview

BTC’s terms reacted to the upside and could proceed connected this trajectory successful the abbreviated term, arsenic the FED met marketplace expectations.

In the mean term, according to Material Indicators (MI), the FED projects 7 complaint hikes that hint astatine a imaginable hawkish attack successful monetary policy. This could construe into a headwind for BTC’s terms and the crypto market.

The U.S. fiscal instauration is determined connected reducing ostentation which presently stands astatine a multi-decade high. However, reducing ostentation could beryllium hard successful the existent macro-economic situation with the warfare successful Ukraine and proviso concatenation obstacles.

Bitcoin’s existent terms enactment moves successful tandem with MI’s analysis. Expecting a rally successful the abbreviated term, the analysts are inactive reticent to telephone successful a BTC’s terms bottom. Sharing the illustration below, MI added:

Although Bitcoin has been investigating the 200 MA connected a 3 Day illustration since January and interactions with that scope are rare, astir traders are looking astatine the 200 Weekly MA to beryllium a much valid level to bottommost test.

Source: Material Indicators via Twitter

In addition, the analysts judge Bitcoin could resume a much persistent bullish inclination if it’s capable to reclaim erstwhile lows and interruption supra a caller all-time precocious beyond $69,000.

Bitcoin In The Long Term, A War For Global Dominance

The War successful Russia, inflation, proviso obstacles, and the caller anticipation for Saudi Arabia to commencement accepting the Yuan for lipid transactions adhd to an already unsafe premix of uncertainty.

8/12 Now adhd successful the quality that Saudi Arabia is considering accepting #Yuan alternatively of Dollars for Chinese lipid and you person an accelerator for much economical problems and marketplace uncertainty. https://t.co/5by5PkH8Vf

— Material Indicators (@MI_Algos) March 16, 2022

MI believes determination is an ongoing warfare against the U.S. dollar arsenic a planetary reserve currency. Driven by Russia and China, this struggle could perchance escalate starring to a “black swan event”, similar during 2020 erstwhile the crypto marketplace reacted to the COVID-19 pandemic.

Related Reading | Current Stretch Of Bitcoin Fear Surpasses 2021 Selloff

Bitcoin could travel retired connected apical successful a satellite wherever decentralized and un-censorable wealth becomes a request for the planetary population. MI said:

The anticipation of WW3 makes talking astir trading crypto look petty, but you indispensable program and hole for a achromatic swan event. That means blimpish hazard absorption and preserving superior for what whitethorn beryllium a beingness changing, generational buying opportunity.