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Bitcoin's price has returned to lateral action after a massive rally from its annual lows to around $16,400. The cryptocurrency has been trending up on favorable macroeconomic winds.
Bitcoin Vs. Pow-Pow, A Bull-Run In The Making
Uncertainty still reigns and may hinder any bullish momentum. Pow-pow, A bull race in this writing's makinga, Bitcoin's price hovers around the $23,000 level as the market holds its breath for an interview to come with the US Federal Reserve (fed) president jerome powell.
The crypto market and risk-on assets, such as stocks, have been trending to the downside since 2022 because the Fed has been hiking interest rates to slow down inflation. Jump on this Crypto Deal and get a 150% Welcome Bonus along with 100 Free Spins on your deposit today! traditional ingviewthe crypto market et risk-on assets, For example, stocks, have trended downwards since 2022 because the Federal Reserve Board raised interest rates to slow inflation.
Today, the market estimates that the financial institution is going to reorient its monetary policy. Market participants expect Powell and the Fed to pivot to avoid a recession in the U.S. economy. Recent data on inflation indicate a downward trend.
These two factors are behind the recent combination of bitcoin and crypto. Last week, at the Federal Committee on the Free Market (fomc), The expectation was that the Fed President would be a "hawk", insisting that the market needs to see "pain", as he did in December 2022.
Powell, however, gave the market more latitude and suggested that it might slow the rise in Federal Reserve interest rates.
As reported by the capital qcp trading desk, in the interview today, powell might "shake things up." if the fed makes a firm statement to offset last week's fomc, the market may experience some volatility downwards. Current lateral prices reflect the elevated expectations of market players. QCP Capital noted:
Hopefully tomorrow’s interview will clear things up for everyone – especially his view on financial conditions, and whether he thinks this rally has gotten out of hand. (…) it seems inflation had indeed fallen quicker than what the FOMC forecasted in Dec, as compared to our expectation that it was in-line with their projections.
Qcp capital noted: let's hope the conversation tomorrow will clarify things for everyone – especially his opinion on financial terms, and if they think this rally has become uncontrollable. (...) Indeed, inflation appears to have plummeted faster than expected in December, relative to what we expected them to do. Additionally, Bitcoin investors should keep an eye on the upcoming Consumer Price Index (cpi) printing, a substitute for measuring inflation. The trading desk added:
Post Powell, all eyes will quickly move to CPI on 14 Feb, barring any unforeseen outliers in this Friday’s inflation expectations number. After Powell, all eyes will quickly turn to the Consumer Price Index on February 14, unless unexpected outliers manifest themselves in this Friday's inflation forecast.
QCP Are we going to see a Valentine's Day massacre or a redemption on some other small footprint? Related readings: Walmart files for new crypto, trademarks Blockchain Via ClubQCP from Sam.
