Bitcoin surpasses $37,000 as Fed tone ‘becomes more hawkish than expected’
Bitcoin price continues to send mixed signals, increasing uncertainty for investors and negatively impacting asset prices across the market.
Data from TradingView shows BTC price remaining below $38,000, and despite a slight decline in crypto and stock markets on Jan. 26, comments from the recent FOMC meeting are slowly fading as investors are aware that interest rates will rise soon.
BTC/USDT 4 hour chart | Source: TradingView
So what are analysts and traders saying about Bitcoin’s recent price action and the macroeconomic factors impacting the broader crypto market?
Five “limited” transactions
Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, pointed to BTC’s long-term range-bound trading performance as of early 2021 wonder: “What will end Bitcoin, ETH range trading?”
BTC/USD weekly chart | Source: Twitter
According to McGlone, the key to breaking out of the current range is the “bullish fundamentals” that support Bitcoin’s underlying strength.
“According to the laws of economics, a market develops over time with increasing demand and decreasing supply. As such, Bitcoin could bottom again around $30,000 as the resistance at $60,000 has been active for quite some time.”
The Fed continues to add downside risks
Macro Hive CEO and Head of Research, Bilal Hafeez, offered a deeper analysis of the impact of the Federal Reserve’s Jan. 26 meeting, noting that the authorities’ tone “has gotten a little more muted, more aggressive than expected.”
Hafeez pointed to the Fed’s decision to raise its inflation forecast as a sign that the central bank recognizes that “they need to be more aggressive than before,” and he highlighted Powell’s comment that “this cycle will be different than the previous cycle.” , indicating a faster growth rate than before.”
In that regard, Hafeez notes that the Fed is “still undecided on the path to implementation” and notes that Powell “hasn’t provided much other information on quantitative tightening other than that she will be working on the fundamentals.”
“Overall, the Fed is comfortable with stock markets and risk markets being sold off as they tighten financial conditions, which in turn could lower inflation. However, bond yields rose after the meetings. Likewise, the stock and crypto markets also rallied. As a result, the Fed will continue to add downward pressure on risky markets.”
Weak in the short term, strong in the long term
The short-term outlook for BTC was mentioned by derivatives trader and Twitter user Crypto McKenna. I have posted diagram below and says, “BTC price action is about to get very boring.”
“In my opinion there is no trading season for the next 10-20 days.”
BTC/USD 6 hour chart | Source: Twitter
Despite the short-term weakness in price forecasts and the current sideways movement, the long-term prospects remain promising for a number of reasons, as mentioned in tweets from analyst Will Clemente:
“Bitcoin price weakens on risk-off behavior while fundamentals strengthen: Intel developing mining chips, Russia looking to enter mining, Goldman Sachs bullish, Google partnership with Coinbase, El Salvador’s bitcoin bond. This asymmetry is less likely to decrease.”
The total crypto market cap currently stands at $1,680 trillion and Bitcoin’s dominance is 42%.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
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Bitcoin surpasses $37,000 as Fed tone ‘becomes more hawkish than expected’
Bitcoin price continues to send mixed signals, increasing uncertainty for investors and negatively impacting asset prices across the market.
Data from TradingView shows BTC price remaining below $38,000, and despite a slight decline in crypto and stock markets on Jan. 26, comments from the recent FOMC meeting are slowly fading as investors are aware that interest rates will rise soon.
BTC/USDT 4 hour chart | Source: TradingView
So what are analysts and traders saying about Bitcoin’s recent price action and the macroeconomic factors impacting the broader crypto market?
Five “limited” transactions
Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, pointed to BTC’s long-term range-bound trading performance as of early 2021 wonder: “What will end Bitcoin, ETH range trading?”
BTC/USD weekly chart | Source: Twitter
According to McGlone, the key to breaking out of the current range is the “bullish fundamentals” that support Bitcoin’s underlying strength.
“According to the laws of economics, a market develops over time with increasing demand and decreasing supply. As such, Bitcoin could bottom again around $30,000 as the resistance at $60,000 has been active for quite some time.”
The Fed continues to add downside risks
Macro Hive CEO and Head of Research, Bilal Hafeez, offered a deeper analysis of the impact of the Federal Reserve’s Jan. 26 meeting, noting that the authorities’ tone “has gotten a little more muted, more aggressive than expected.”
Hafeez pointed to the Fed’s decision to raise its inflation forecast as a sign that the central bank recognizes that “they need to be more aggressive than before,” and he highlighted Powell’s comment that “this cycle will be different than the previous cycle.” , indicating a faster growth rate than before.”
In that regard, Hafeez notes that the Fed is “still undecided on the path to implementation” and notes that Powell “hasn’t provided much other information on quantitative tightening other than that she will be working on the fundamentals.”
“Overall, the Fed is comfortable with stock markets and risk markets being sold off as they tighten financial conditions, which in turn could lower inflation. However, bond yields rose after the meetings. Likewise, the stock and crypto markets also rallied. As a result, the Fed will continue to add downward pressure on risky markets.”
Weak in the short term, strong in the long term
The short-term outlook for BTC was mentioned by derivatives trader and Twitter user Crypto McKenna. I have posted diagram below and says, “BTC price action is about to get very boring.”
“In my opinion there is no trading season for the next 10-20 days.”
BTC/USD 6 hour chart | Source: Twitter
Despite the short-term weakness in price forecasts and the current sideways movement, the long-term prospects remain promising for a number of reasons, as mentioned in tweets from analyst Will Clemente:
“Bitcoin price weakens on risk-off behavior while fundamentals strengthen: Intel developing mining chips, Russia looking to enter mining, Goldman Sachs bullish, Google partnership with Coinbase, El Salvador’s bitcoin bond. This asymmetry is less likely to decrease.”
The total crypto market cap currently stands at $1,680 trillion and Bitcoin’s dominance is 42%.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
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