Bitcoin looking up again, crypto and stocks await Federal Reserve signals
Last Updated on 30 January 2024 by CryptoTips.eu
For all those who thought we wouldn’t be equally dependent on the Federal Reserve for the direction of Bitcoin and the crypto markets in 2024 as we were in 2023, we have some bad news. Given that the American economy is still the largest in the world, everyone is eagerly awaiting Wednesday and Jerome Powell’s interest rate decision.
Bitcoin meanwhile seems to have given up on the so-called ‘sell the news’ downturn and is looking upwards again. At the time of writing, Bitcoin is being traded at $43,700.
Powell
Just about everyone on Wall Street expects the US Federal Reserve to leave interest rates unchanged this week.
But it is especially the press conference afterwards that is very important. Jerome Powell will indicate what his team thinks about the current state of the American economy and also give an indication of the policies he will pursue this year.
Bitcoin has risen sharply because historically the halving has been expected to cause a price increase, but also because the crypto world is counting on global interest rates falling later this year.
So let’s suppose Powell says he is far from ready to lower interest rates, then a massive dump to the support point of $38,500 is again a possibility. If Powell says his team is very optimistic about the current US economy, then we could start a new Bitcoin rally.
Bitcoin miners
Shares of Bitcoin mining companies, meanwhile, are on the mend as the largest digital coin traded around $43k again.
Cleanspark, Marathon Digital and Riot Platforms all had a miserable month of January due to the Bitcoin selloff, but have been able to post very nice profits again in recent days.
It looks like the support line is holding. Let’s hope for a good press conference from Powell.