Bitcoin and Ethereum turn green on release of FOMC minutes, BTC reaches $30,000 and ETH $2,000 by the end of February
- The cryptocurrency market has been on the rise since the year began, with the Bitcoin price hitting a six-month high of around $25k.
- Bitcoin and Ethereum prices have added less than 2 percent in the past 24 hours after the FOMC minutes revealed a weaker dollar.
The cryptocurrency market led by Bitcoin and Ethereum has surged higher in the past 24 hours following the release of the Federal Open Market Committee (FOMC). According to our latest crypto market data, Bitcoin price traded around $24.4,000 on Thursday, up about 1.2 percent in the last 24 hours. The second-largest digital asset, Ethereum, has gained about 1.8 percent to trade around $1,668 today.
The FOMC meeting data showed that most participants supported a 25 basis point (bps) hike, except for a few officials who favored or could have supported a 50 basis point (bps) hike. Consequently, the market did not have much volatility to show from the released data.
#FOMC minutes showed quite divergent opinion, hence the muted response in the market. Some officials called for a higher rate hike of 50 bps, while others worried that recession was on the way. This difference of opinion created a balance that has not yet been resolved with data #Evai pic.twitter.com/NdSDjkO3sd
– Matthew Dixon – Managing Director Evai (@mdtrade) 22 February 2023
According to Fed Chair Jerome Powell, monetary policy may remain unchanged until the inflation rate falls to 2 percent. Also, the CPI recently indicated more pain for the dollar despite the tightening of monetary policy. Fed noted.
[….]participants agreed that while there were recent signs that the cumulative effect of the Committee’s monetary policy tightening had begun to moderate inflationary pressures, inflation remained well above the Committee’s long-term target of 2 percent and the labor market remained very tight, contributing to continued upward pressure on wages and prices.
The weakening of the US dollar is a victory for Bitcoin and other crypto-assets with deflationary tokenomics. Furthermore, the Fed has printed more money in recent years than in decades to revitalize the economy from the ravages of Covid-19.
Bitcoin and Ethereum Price Action
The cryptocurrency market has been on the rise since the year began, with the Bitcoin price hitting a six-month high of around $25k. The Ethereum price, on the other hand, has scaled to its five-month high after reaching $17k earlier last week. Cryptoanalysts are closely monitoring the Bitcoin price to see if it will break the $25k resistance level and convert it into support.
On the daily Bitcoin price, a golden cross between the 50 and 200 MA has some traders believing that a rally continuation is plausible. However, a dead cross on the weekly time frame, which is the first in the history of the Bitcoin market, has most traders worried about more choppy days.
No spam, no lies, just insight. You can unsubscribe at any time.
The neutrality of the Bitcoin price has pushed more crypto traders to low-cap altcoins with higher volatility and already in an identified market trend. Meanwhile, the possibility of the Bitcoin price rising towards $30k has motivated whale traders to continue accumulating more coins.
Also, the Bitcoin halving is a year away and the event has triggered all crypto bull markets. As a result, the chances of Ethereum reaching $2000 by the end of February cannot be ignored.
Crypto News Flash does not endorse and is not responsible or liable for the content, accuracy, quality, advertising, products or other materials on this site. Readers should do their own research before taking any action related to cryptocurrencies. Crypto News Flash is not responsible, directly or indirectly, for any damages or losses caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned.
