Bitcoin

Bitcoin Briefly Dip Below $43,000 as Fed Says Rate Hike Will Be “Appropriate Soon”

Bitcoin Briefly Dip Below $43,000 as Fed Says Rate Hike Will Be “Appropriate Soon”

Bitcoin (BTC) fell below $43,000 on Feb. 17 as another day on the range soured hopes of an inbound breakout.

BTC/USD 1 hour candle chart (Bitstamp). Source: Trading View

The Fed doesn’t care about rate hikes

Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD was acting in a slightly widened zone with $44,500 as its ceiling in the past 24 hours.

The pair had returned to the top of its intraday range overnight following comments from the US Federal Reserve.

Expected that it would provide clues on possible interest rate hikes, the minutes of a meeting of the Federal Open Market Committee (FOMC) at the end of January ultimately held few surprises. A hike could come in March, but no firm commitment has been expressed on the process.

“The Committee seeks to achieve a maximum employment and inflation rate at the rate of 2% in the long term”, declaration read.

“In support of these objectives, the Committee decided to maintain the target range for the federal funds rate between 0 and 1/4%. With inflation well above 2% and a buoyant labor market, the Committee expects it will soon be appropriate to raise the target range for the federal funds rate. »

The FOMC added that it aimed to halt asset purchases altogether in March, in line with previous plans, with February purchases expected to amount to at least $30 billion.

With little fresh news, crypto markets were therefore uninspiring heading into Thursday. Zooming out, however, optimism was still firmly present on the strength of BTC price action over the past two weeks.

“My bias has changed a bit and I now prefer a squeeze towards 53k before mid-March,” said popular trader and analyst Pentoshi. noted as part of his latest Twitter update.

Others have also noted the relatively robust price performance this month compared to previous episodes of Bitcoin falling from all-time highs last November.

By bouncing near $33,000 in January, for example, a miners’ sellout event – where miners are forced to sell or stop mining altogether because the spot price of Bitcoin is lower than their cost of production – was successful. avoid.

As Cointelegraph reported, support levels have been rising in recent days as buyers bet on a potential drop that is shallower than expected.

Russian tensions persist for stocks and crypto

Other macro signals of the day came in the form of renewed uncertainty over the Russia-Ukraine saga, with reports of hostilities emerging overnight.

Related: Price Analysis 2/16: BTC, ETH, BNB, XRP, ADA, SOL, AVAX, LUNA, DOGE, DOT

Stock futures were down at least 0.5% before Wall Street opened.

Previously, the US government had dismissed claims that Russia was trying to de-escalate the situation on the Ukrainian border as “false” – which would have instead appeased jittery markets.

“Yesterday the Russian government said it was withdrawing its troops from the Ukrainian border … we now know that was not true,” a senior official said on Wednesday. cited by the Financial Times.

Bitcoin and altcoins remain strongly correlated to stocks as 2022 progresses.