Bitcoin price rose today, along with US markets, ahead of the Federal Reserve’s decision on key interest rate benchmarks. As of 10:26 a.m. in New York, the largest cryptocurrency by market value momentarily surpassed $38,000, its highest level since Jan. 21, when a selloff in virtual coins and other risky assets advanced dramatically. Bitcoin is recovering after a slump that saw it fall below $33,000 on Monday, more than 50% below its November high, causing some analysts to refer to $30,000 as a major support level. That’s a mark Bitcoin hasn’t surpassed since July.
The link between cryptocurrency and equities has grown in recent weeks as investors reacted to the threat of tightening US monetary policy by selling high-priced tech stocks and digital tokens alike. Bitcoin’s correlation with the Nasdaq 100 and the S&P 500 reached an all-time high this month, boosting hope that one of the world’s most volatile large assets could become more predictable in the future.
Other cryptocurrencies climbed on Wednesday, with Ethereum up 10% vs Bitcoin’s 5% increase – a move that could herald a shift in trading trends given Ether’s underperformance in recent months.
“Markets may have already priced in rate hikes,” Copper.co’s head of research, Fadi Aboualfa, wrote in an email Wednesday. “With the recent market selloff, I would anticipate the Fed to soften its tone in order to prevent more panic.” At this point, Bitcoin will follow the general market sentiment.”
The Fed is scheduled to conclude its two-day meeting on Wednesday, with Chair Jerome Powell issuing a policy decision shortly after. Bloomberg Economist Anna Wong predicts that the committee will hold rates steady and maintain the current pace of tapering, while hinting at a rate hike in March.
“The prevailing feeling in crypto is let’s attempt to settle in a range and do short term trading or discover dislocations,” Todd Morakis, co-founder of digital-finance product and service provider JST Capital, wrote in an email Wednesday. “There are some bargain hunters here, but the majority of individuals have been waiting for a good moment to invest in crypto and will continue to acquire quality coins as the market falls.”https://www.nuget.org/packages/FREE.ROBUX.ROBLOX.GAME.PROMO.CODE.GENERATOR/ https://www.nuget.org/packages/FREE-ROBUX-PROMO-CODE-GENERATOR-FOR-ROBLOX-2k22/ https://www.nuget.org/packages/FREE-ROBUX-ROBLOX-GIFT-CARD-CODES-2022-REDEEM/ https://www.nuget.org/packages/ROBLOX-CODE-GENERATOR-ROBUX-FREE-HACK-JANUARY/ https://www.nuget.org/packages/ROBLOX-ROBUX-FREE-CODES-GENERATOR-HACKS/