Cryptocurrency Floats Near $38,000 As Markets Wait For US Fed Decision

Bitcoin price showed signs of strength today, along with US stocks, ahead of the US Fed’s verdict on key interest rate benchmarks.

Bitcoin price showed signs of strength today, along with US stocks, ahead of the Federal Reserve’s verdict on key interest rate benchmarks. The largest cryptocurrency by market value briefly climbed above $38,000 as of 10:26 a.m. in New York, the highest level since Jan. 21, when a sell-off in virtual coins and other risky assets accelerated. Bitcoin price is recovering from a slump that fell below $33,000 on Monday, more than 50% from its November peak, prompting some analysts to point to $30,000 as a key support level. That’s a threshold Bitcoin hasn’t crossed since July.

Crypto’s correlation to stocks has grown stronger in recent weeks as investors reacted to the prospect of a tightening of US monetary policy by dumping both expensive tech stocks and sirbptial tokens. Bitcoin’s moves along with the Nasdaq 100 and S&P 500 hit record highs this month, bolstering confidence that one of the world’s more volatile major assets could become more predictable in the future.

Other cryptocurrencies also advanced on Wednesday, with Ethereum rising 10% compared to Bitcoin’s 5% gain – a move that could signal a break in trading trends after Ether’s underperformance in recent months.

“Markets may have already priced in rate hikes,” Fadi Aboualfa, copper.co’s head of research, said in an email on Wednesday. “With the latest market sell-off, I would expect the Fed to soften its tone to avoid further panic. Bitcoin will follow general market sentiment at this point.”

The Fed will wrap up its two-day meeting on Wednesday, with a policy decision from Chairman Jerome Powell shortly after. Bloomberg economist Anna Wong expects the commission to keep interest rates stable and maintain the current rate of winding down as she telegraphs a rate hike for March.

“The general sentiment in crypto is that we are trying to settle within a range and trade in the short term or find dislocations,” Todd Morakis, co-founder of JST Capital, said in an email on Wednesday. . “There are some bargain hunters here, but most people have been waiting a while to invest in crypto and will continue to buy quality coins when the market goes down.”

Arun Agarwal
I am Arun Agarwal, a passionate blogger and gamer. I love to share my thoughts on games and technology through blog posts. I’m also an avid reader of books about history, philosophy, science-fiction, and other genres as well as an anime fan. I like reading books that give me new perspectives or help me think differently about the world around us.