Analysts are bullish for Bitcoin to hit new all-time highs, amid the strong bounce back, before the Bitcoin halving event 2024 in April.
Although the US CPI inflation data for the month of February was higher than expected, the Federal Reserve took a dovish stand during the FOMC meeting on Wednesday. As anticipated, the US Federal Reserve opted to maintain steady interest rates at 5.25%-5.5% on Wednesday. Additionally, it retained its forecast of three rate cuts for the current year.
This led to a major relief rally in risk-ON assets like equities and cryptocurrencies. All of the top three Wall Street indices hit their new record highs in Wednesday’s trading session. According to the economic projections from the March meeting of the Federal Open Market Committee (FOMC), policymakers anticipate lowering interest rates to 4.6% by the end of 2024. This aligns with the median level forecasted in their December outlook.
The Fed’s decision to proceed ahead with three rate cuts comes despite hotter-than-expected Consumer Price Index (CPI) and Producer Price Index (PPI) reports.
Furthermore, as per the CNBC report, Federal Reserve Chair Jerome Powell that the strong momentum in the labor market would not deter the Fed from proceeding with cutting down interest rates. “Strong hiring in and of itself would not be a reason to hold off on rate cuts,” he said.
Ahead of the FOMC announcement, the majority of market participants had anticipated the first rate cut to occur in June. However, following the announcement, the market’s expectation for at least one rate cut by June has increased to 70%, up from over 60% previously, as per data from the CME FedWatch Tool.
Bitcoin and Altcoins Rally
Bitcoin (BTC) surged to reach a daily high of $67,781, marking a remarkable recovery of over 10% from earlier levels observed within the same day. analysts are expecting the Bitcoin price rally to continue leading all the way to Bitcoin halving in April next month.
Massive bounce on #Bitcoin initiating continuation here.
I think we'll be consolidating, and, given the strong bounce, have another run to the all-time high pre-halving. pic.twitter.com/CfPbnNOJTS
— Michaël van de Poppe (@CryptoMichNL) March 21, 2024
Meanwhile, Ether (ETH) bounced back by a strong 11$ moving past $3,300 earlier in the day. The Ethereum bulls raged-in despite reports of the Ethereum Foundation facing a confidential inquiry from an undisclosed government entity. Besides, there’s also growing speculation about the US Securities and Exchange Commission considering classifying ETH as a security.
In addition, Dogecoin (DOGE), Litecoin (LTC), and Bitcoin Cash (BCH) led the gains among major cryptocurrencies. This uptrend followed the revelation of a Coinbase plan, which had been posted on a US regulator’s website several weeks ago, to offer futures contracts on these digital assets.
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