Bitcoin rallies above $49K following Fed FOMC announcement of rate hikes in 2022
The cryptocurrency market saw a significant rally after the Federal Reserve announced that they would be increasing interest rates in 2022. The price of Bitcoin started on Wednesday, September 5th at around $4,400 and rocketed up to over $49K by Friday evening. Many believe this was due to global uncertainty about policy and financial markets following the announcement of a trade war between China and U.S., but many analysts are still unsure how much increased Fed rate hikes will affect cryptocurrencies as an asset class going forward
The “next fed meeting” is the Fed FOMC announcement of rate hikes in 2022. This caused the Bitcoin price to rally above $49K.
Bitcoin (BTC) surged above $2,000 on December 15 as markets responded to news that the US Federal Reserve will increase interest rates and phase out its bond-buying program in 2022.
1 hour candle chart of BTC/USD (Bitstamp). TradingView is the source of this information.
“Kind of what we were thinking,” says the narrator.
BTC/USD touched $49,310 on Bitstamp, according to data from Cointelegraph Markets Pro and TradingView, the highest since December 12, when the price briefly surpassed $50,000.
The rally gained traction as the Federal Reserve signaled that it would hike its benchmark rate three times next year, above market expectations. The central bank also said that it will accelerate its asset purchase taper.
Concerns have previously been raised about such proposals having a detrimental effect on both conventional and crypto markets due to a lack of “easy” liquidity availability. In the end, though, it seemed that the information had put the policy’s uncertainties to rest.
“From an equity viewpoint, they basically have to concentrate on profits, margins, and growth,” Jim Caron, a senior portfolio manager and chief strategist on Morgan Stanley Investment Management’s global fixed Income team, told CNBC.
“It’s a breath of relief for the equity market, which had been expecting it to be considerably more aggressive. At least, that’s what we were thinking.”
The S&P 500 rose somewhat as a result, while cryptocurrencies, including Bitcoin, gained slightly under 5%. BTC/USD was stabilizing around $49,000 at the time of writing.
BREAKING: The Federal Reserve has kept its interest rate at 0-0.25%, indicating that it is determined to using the entire range of tools at its disposal to aid the US economy.
That is to say.
#Bitcoin’s bull market is still going strong.
December 15, 2021 — Michaal van de Poppe (@CryptoMichNL)
Analysts who are well-known have remained wary. While Cointelegraph writer Michal van de Poppe believes the BTC bottom was reached on December 4, William Clemente is hesitant to recommend a market entrance at present pricing.
“My intuition tells me to purchase BTC, but I’m keeping to my strategy of buying at $53K confirmation. It is necessary to stick to the strategy “He notified his Twitter followers about it.
$53,000 would indicate an exit from the most recent December range, bringing Bitcoin’s market capitalization back to $1 trillion.
Ethereum reaches a new high of $4,000.
Solana (SOL), which capitalized on recent advances to generate 14 percent daily rise at the time of writing, continues to lead major cap cryptocurrencies.
During its own Fed-induced rise, Ethereum (ETH), the biggest cryptocurrency by market cap, reclaimed the $4,000 milestone.
1-hour candle chart for ETH/BTC (Bitstamp). TradingView is the source of this information.
After reaching local lows of 0.078 earlier in the day, ETH has risen beyond the 0.08 BTC threshold.