After falling to as low as $61K yesterday, Bitcoin price has finally made a recovery after the Fed’s meeting. Bitcoin’s recent bearish nature was due to this Fed meeting pressure because of its impact on the crypto market. These meetings are to discuss current interest rates and implement new policies.

Bitcoin Price Analysis

The Bitcoin price is currently $67,070 after a 9% hike from yesterday’s conditions, marking a decent comeback. Compared to previous weeks’ data, it is still in the dip of almost 8%. Bitcoin has set a new all-time high record of $73,750.07 and was forecasted to move forward to the 80K mark. Instead, the Bitcoin price dropped from $67,626 to $61,164 within a day.

A random bearish trend struck the crypto market, where all the cryptocurrencies suffered heavily, losing their weeks of gains. Even Bitcoin fell to $61,164, which was the lowest point up to now in this month.

Updates From the March Fed Meeting

The Fed meeting is over with a positive note where no changes were made in interest rates. It has brought back the bullish nature of crypto, leading to a surge in Bitcoin prices. The Federal Open Market Committee (FOMC), which organizes these Fed meetings, has kept the fund rate in between the range of 5.25% to 5.50%, keeping it constant for the last five meetings. However, the FOMC revealed their expectations of three rate cuts this year.

The Wednesday report mainly highlighted the expansion of the US economy, the low unemployment rate, and the ascended inflation rate. The official has continued forward with their targeted CPI inflation of 2% target, last seen in February 2021. The official statement says,

The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent

As included in December projections, the Fed is expecting the lowest interest rate comparatively three times lower to reach 4.6% by the year-end. However, the market pricing might see a first cut in June, as there’s a 60% probability of that happening.

Based on Bitcoin’s performance around these meetings, it is clear that the Fed meeting does impact the crypto market because of its impact on the dollar value and monetary policies related to cryptocurrency.

Signs For Bitcoin Price Recovery With Bulls

As Bitcoin has already recovered from the price dip, the charts predict stability around this value for the next few days, with advancement to crossing another ATH mark by the month’s end. With the surged Bitcoin price, the new Bitcoin resistance comes between $69,000-$73,000, and the support is supposed to be around the $ 65k mark.

Another thing that will help boost the price is the Bitcoin halving, which is just a few more days away. Based on many analysts’ predictions, it is anticipated that Bitcoin will reach the $80,000 mark before the halving, where the Bitcoin FOMO will play a significant role. As per the Coin Bureau Guy Turner, Bitcoin price will be between $130,000-$180,000 before the year ends.

With Bitcoin’s recovery, the rest of the crypto market is also seeing a lift where the altcoins have outperformed Bitcoin. The top cryptos are surging, such as Ethereum (11.10%), Solana (12.26%), BNB (5.92%), Dogecoin (17.58%), Floki Inu (37.5%), JasmyCoin (19.79%) and many more.

Also Read: Will Bitcoin Hit $80,000 Before Halving

Conclusion

The downfall of the crypto market amid the Fed meeting is over with no changes in the interest rate. Thanks to that, Bitcoin price has finally recovered to the $67K range, and the rest of the altcoins are surging. From here, the Bitcoin ship is headed towards the ATH record to move forward to the $80K before the halving.

Read more about Early Signs to Spot Before the Next Crypto Market Crash

The post Bitcoin Price Bounce Back With Fed Meeting: Will Crypto Market Recover? appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am