Bitcoin (BTC) is riding on the wave of the latest interest rate hike by the United States Federal Reserve. Surging past the $22,000 mark, Wednesday’s price action comes as no surprise, as the cryptocurrency reacts excitedly.
Fed to keep hiking rates
Before now, markets had eagerly anticipated the Fed’s next move to be the 0.75 percentage point. But even now that that has been confirmed, it certainly appears there’ll be room for more hikes soon. According to what the Federal Open Markets Committee (FOMC) said in a press release;
“The Committee seeks to achieve maximum employment and inflation at the rate of 2% over the longer run.”
To achieve the goal, however, the Committee confirms that it will continue hiking rates as that is only appropriate.
Good news for Bitcoin investors?
For Bitcoin and other risk assets, this could turn out to be a major relief. Earlier today, Wall Street macro strategist David Hunter predicted that recent lows would not repeat. Although, his forecast was purely based on the ever-present correlation between Bitcoin and the equities markets. “The market is poised for a move higher to S&P 4150–4200 & then maybe a sharp, short pullback to 3800 before a much bigger, more sustainable rally to 6000,” he wrote about the equities markets.
Meanwhile, many traders and analysts also share sentiments with Hunter. Analytics firm Arcane Research earlier reported that institutional sentiment is on the increase in the second half of July. Also, a renowned analyst known as Dylan LeClair sighted long positions holding on derivatives exchange FTX. And that was only a few hours before the Fed’s decision. Whatever might be the case, it does appear that Bitcoin bulls are all set in motion and ready to take off. At least, for the time being.
Meanwhile, Fed chair Jerome Powell is still expected to give a press conference and his tone would undoubtedly have an impact on the market direction.