Bitcoin: Will a Fed Interest Rate Hike Make or Break BTC’s Rally?
Bitcoin's current price struggles have become a hot topic among investors, with prices hovering around $27,000.
Many wonder whether the cryptocurrency will recover from its recent dip as the broader market trades sideways. This uncertainty has left traders and investors pondering when and how the king crypto will bounce back.
Bitcoin had a promising start to 2023, leading an impressive rally of around 90% that lifted the entire crypto ecosystem, proving wrong those who had declared the asset dead multiple times in 2022.
However, this hot streak ended abruptly, with the value plummeting back to $27,000, sparking debates about whether this is a minor correction or the beginning of a more significant downtrend.
Despite the recent dip, there are reasons to believe Bitcoin will soon surge beyond the $30,000 mark.
The release of upcoming economic indicators, such as PCE, GDP, and jobless claims, could affect the possibility of a US Federal Reserve interest rate hike and the FOMC’s decision. If the Fed Chairman announces a pause in the interest rate hike, it could trigger a break above $30,000 for Bitcoin.
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However, if there is a hike announcement, the market might have already priced it in, and it would confirm that a “sell in May and go away” strategy won’t be effective in 2023.
Bitcoin’s rally or slump will depend on macro factors yet to be seen in detail.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
