Bitcoin reaches $39,000 amid speculation that Fed rate hikes will cease due to Powell’s actions
Bitcoin Surges to $39,000, Highest Level Since May 2022
Bitcoin (BTC) has reached $39,000 for the first time in 19 months, peaking at a level not seen since May 2022. The surge comes in response to the latest commentary from the Federal Reserve regarding inflation, causing an excited market reaction.
Powell Remains Cautious on Interest Rate Hikes
Federal Reserve Chair Jerome Powell’s comments at Spelman College in Atlanta, Georgia, indicated that it would be premature to halt interest rate hikes. Powell reiterated the FOMC’s commitment to gradually reducing inflation to 2% and maintaining a restrictive policy until they are confident in achieving that objective. His cautious tone served to boost risk asset sentiment, contributing to the surge in Bitcoin prices.
Market Reaction to Fed Commentary
While Powell’s remarks led to a surge in Bitcoin prices, financial commentary resource The Kobeissi Letter remained cautious about the Fed’s potential future actions. This caution stemmed from the Fed’s consistent narrative and the market’s continued calls for a policy pivot. However, Bitcoin capitalized on the positive sentiment, unlike its muted reaction to earlier U.S. macro data releases.
Expectations for December FOMC Meeting
The next Federal Open Market Committee (FOMC) meeting in mid-December is expected to provide clarity on the future of interest rates. Market expectations currently indicate a likelihood of a pause in interest rate hikes, according to data from CME Group’s FedWatch Tool.
BTC Price Targets and Market Liquidity
Bitcoin markets saw a brief trip to $39,000, with popular trader Daan Crypto Trades revealing the size of sell-side liquidity involved in the surge. Additionally, Keith Alan, co-founder of trading resource Material Indicators, highlighted the significant resistance at $39,000 and $39,200, along with substantial buyer support at $38,000.
Expectations for Bitcoin Price Movement
Traders and analysts in the cryptocurrency space have expressed optimistic forecasts for Bitcoin’s price movement. BitQuant anticipates a powerful signal in the event of a daily close above $38,000, leading to upward momentum. Meanwhile, Crypto Ed predicts that Bitcoin could reach at least $39,200 in the near future.
Overall, the surge in Bitcoin prices to $39,000 demonstrates the impact of Federal Reserve commentary on the cryptocurrency market, with traders and analysts expressing optimism for further upward movement.
I have over 10 years of experience in the cryptocurrency industry and I have been on the list of the top authors on LinkedIn for the past 5 years. I have a wealth of knowledge to share with my readers, and my goal is to help them navigate the ever-changing world of cryptocurrencies.
