Why Is Bitcoin And Crypto Up Today?
04 Mayo 2023 - 3:35AM
NEWSBTC
The Bitcoin and crypto markets are up today, despite the fact that
the initial reaction to yesterday’s FOMC of the US Federal Reserve
(Fed) was rather bearish. During the meeting, the Bitcoin price
dropped from $28,800 to $28,250 as the market reacted to the
extremely hawkish comments made by Jerome Powell. The Fed Chairman
avoided confirming that yesterday’s rate hike was the last one in
this cycle, despite multiple requests from journalists. He also
stressed that there is no room for rate cuts this year in the Fed’s
current scenarios. On the other hand, in its rate hike statement,
the Fed omitted the earlier remarks that announced further hikes.
Bullish 👇 https://t.co/k4DiOUwl2T — Jake Simmons (@realJakeSimmons)
May 3, 2023 Why Is Bitcoin And Crypto Up Today? The fact that
Bitcoin and the broader crypto market are rising today is likely
due to the fact that despite all of Powell’s efforts, the market is
expecting a pivot, that is, a pause in rate hikes at the next FOMC
meeting on June 14. The reason: In March, the majority of FOMC
participants said that the final rate for this tightening cycle
would be between 5% and 5.25%, which is exactly where the fed funds
rate arrived yesterday. The CME’s FedWatch tool shows that an
overwhelming 99.2% currently expect a pause in June. Related
Reading: Bitcoin Market in Disarray, But Optimism Prevails With Two
Narratives More than 85% expect the first rate cut as early as
September. In total, the market currently expects at least three
rate cuts (to 4.25 to 4.5 basis points) by year-end. And even JP
Morgan’s Davis believes that “this is definitely the end of the
hiking cycle for the Fed.” The representative of the largest U.S.
bank by deposits also believes a Fed rate cut could come “as early
as September.” The projections are extremely bullish for Bitcoin
and crypto, as risk assets traditionally benefit the most from a
dovish monetary policy as more liquidity is pumped into the
financial system. On the other hand, Bitcoin investors may have
once again reacted to the deepening banking crisis in the US.
Related Reading: Check Out This Shocking Pepe Coin Versus Bitcoin
Comparison As with the collapse of Silicon Valley Bank and First
Republic Bank, BTC saw a spike yesterday as Los Angeles-based
PacWest (PACW) crashed by around 60% in after-hours
trading. The regional bank is rumored to be looking for a
buyer and considering other strategic options, Bitcoinist reported.
Rumor has it that there is little buying interest, so PacWest could
be the next domino. Further Upside Momentum In Sight? Further
upside could be provided today by the Dollar Index (DXY) on the
back of the European Central Bank (ECB) rate decision. As analyst
Ted (@tedtalksmacro) explained, the DXY is expected to make a
strong move today: 50 bps hike and dollar index should finish the
day much lower. 25 bps hike and I’d expect a small bounce. The DXY
continued to fall yesterday after the FOMC meeting and is currently
still only just above the multi-month support at 101. If the level
breaks, the DXY could face a deeper plunge, Bitcoin could benefit
heavily due to its inverse correlation. A move towards $30,000
could be next if the support at $28,800 holds. However, first a
sweep if the open interest seems necessary as long positions on the
futures market are once again heating up (during a sideways
movement). At press time, the Bitcoin price stood at $29,086.
Featured image from iStock, chart from TradingView.com
(COIN:OPPUSD)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
(COIN:OPPUSD)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024
Real-Time news about (Criptodivisas): 0 recent articles
Más de Optimism Artículos de Noticias