The US Federal Reserve announced a rate hike of 50 basis points. The market reaction has returned bitcoin to the level before the recent rise, but has not yet caused a steady decline in quotes.
November US CPI data came in lower than expected, prompting the first cryptocurrency to rise ahead of the latest US Federal Reserve (Fed) meeting.
On the eve of the meeting, the BTC renewed five-week highs above $18,300, but then fell along with stock indices amid news of the Fed’s intention to raise rates higher and hold the value longer than markets had hoped. At the start of the event, the largest cryptocurrency by market capitalization fell in price by almost $1,000 for a single five-minute candle.
The Fed ended up raising rates by 50 basis points to 4.5%. Officials hope that such a decision will bring inflation down to 2%.
BTC failed to close the day above its 50-day moving average, but continues to fluctuate around this curve. Consolidation above the line could stimulate additional demand.
Cryptocurrency “index of fear and greed” by Thursday rose by one point, to 31, and continues to be in a state of “fear”. Despite a 1.4% overnight drop, the $860B total crypto market cap has been near the upper end of its trading range for more than a month now.
Popular cryptocurrency analyst Benjamin Cowen expects growth and some consolidation of the BTC rate, but closer to the next halving of the first cryptocurrency. However, a large-scale bull rally, the expert says, will have to wait until the end of 2023.
Source: Bits
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