By
Godfrey Benjamin
April 20th, 2024
Bitcoin and the broader crypto market bounce back with the Fed keeping the interest rates unchanged. Bitcoin is currently eyeing a move above $50,000.
The significant sell-off pressure on Bitcoin has eased finally. On Wednesday, December 16, the Bitcoin (BTC) price jumped back to $49,000 after the crucial Federal Reserve (Fed) meeting.
The Federal Reserve said that it will speed its stimulus withdrawal plans. However, it has kept the interest rates unchanged for now and said they would do it sometime in 2022. The US Central Bank also said that it could raise its benchmark rate three times the next year. Furthermore, it has also increased the speed of its asset purchase tapering.
Well, the equity markets had predicted even strict actions from the Federal Reserve, however, they seem to be more accommodative. The reaction across the equity and crypto market was positive post the Fed commentary on Wednesday.
As of press time, Bitcoin is trading 2.09% up at a price of $49,025 with a market cap of $926 billion. The renewed optimism with ease of the market pressure can drive the price of Bitcoin even higher.
With the Federal Reserve keeping the interest rates unchanged, the US equity market also rejoiced. The Dow Jones Industrial Average (INDEXDJX: .DJI) jumped 1% gaining nearly 400 points. Similarly, the S&P 500 (INDEXSP: .INX) also gained 1.63% during the Wednesday trading hours.
Will the Bitcoin Price Bull Run Continue under the Influence of the Comments by Fed?
Bitcoin investors are having a sign of relief as the Bitcoin price surged past $49,000 after a week of brutal sideways movement. But some market analysts believe that the announcement will have an overall positive impact on the crypto space. Popular crypto analyst Micahël van de Poppe writes:
“FED keeps its interest rate at 0-0.25% as it is committed to employing the full range of instruments available to help the US economy. Which means. The bull market continues for Bitcoin.”
Along with Bitcoin, other altcoins have also jumped with Ethereum (ETH) regaining the $4,000 levels. As of press time, Ethereum (ETH) is trading 4%. Based on technical charts, Poppe also thinks that the market correction of Ethereum is almost over.
I think the correction is done on #Ethereum in which we've seen a few beautiful retests.
I'm expecting this scenario to play out. pic.twitter.com/CTUQrHDZ7b
— Michaël van de Poppe (@CryptoMichNL) December 16, 2021
Other altcoins have also joined the party, Solana (SOL) has gained 8.4% and is currently trading at $179. Cardano (ADA) is trading 4% up at $1.31. Avalanche (AVAX) has gained the most among the top ten list with 14% gains and moving back above $100 levels. Overall, the market looks bullish at this point but it remains to be seen if the momentum can continue further.