Bitcoin Blasts Back Above $35,000 as Bulls Regain Control After Fed Holds Interest Rates
The Bitcoin (BTC) bulls have regained control to push the price of the world’s largest cryptocurrency by market capitalization back above $35,000, following a volatile trading session packed with important macro risk events, including the latest policy announcement from the US Federal Reserve.
The Fed delivered no surprises when opting to hold interest rates at multi-decade highs of 5.25-5.5%, with a bias to potential further interest rate hikes amid ongoing concerns about inflation that remains sticky above their 2.0% target amid a still strong US economy.
Prior to the meeting, the bitcoin market had been a state of balance for around one week, swinging within a $34,000 to $35,000 range, following October’s pump from lows in the $26,000s.
With the Fed meeting out of the way and having delivered no curve balls to the market, the bulls have apparently seen the green light to begin their buying spree once again.
Bitcoin pumped 28.5% in October amid optimism that the US SEC will soon approve BlackRock and other major asset managers’ spot Bitcoin ETF applications, which industry observers think would open the door to a flood of institutional inflows to the Bitcoin market.
Bitcoin’s strong October performance came despite broadly unfavorable trends in the broader macro landscape, such as falling stock prices and rising bond yields.
In recent years, Bitcoin has been positively correlated to stocks (particularly tech) and negatively correlated to US bond yields.
But the narrative long promoted by Bitcoin maximalists that the cryptocurrency should actually be viewed as a safe haven against economic and geopolitical woes has gained ground this year, with major Wall Street leaders like BlackRock’s Larry Fink praising Bitcoin for having
Read more on cryptonews.com
