Bitcoin Pops Above $40K After Fed Hikes Interest Rates, What’s Next For BTC Price?
Early morning on March 17, Bitcoin price was on a roller coaster, breaking down below $39,500 after the Fed raised interest rates by 25 bps, but it soon sustained above $40,000 mark. Despite BTC is still moving in an increasingly tight range between $37,000 and $41,000 since March, both fundamental and technical are turning the tides in the favor of the bulls.
Fed’s Decisions are Less Hawkish Sending BTC on A Wild Ride
On March 16, the Federal Reserve raised its benchmark short-term interest rate by 25bps and signaled up to six additional rate hikes this year. In addition to raising interest rates, the Fed will also begin shrinking its balance sheet. However, the market has already been pricing in seven hikes this year prior to the meeting, and the Fed didn’t say much about their balance-shrinking plans other than an announcement will soon come, which means Fed’s statement and economic projections were not as hawkish as the investors feared, lifting up the market’s risk appetite.
A Compromise Between Russia and Ukraine May Be Forthcoming
On March 16′ peace talks Officials from both Russia and Ukraine expressed cautious optimism that they were making progress toward ending almost three weeks of fighting across Ukraine. And Ukraine’s president Zelenskyy also acknowledged Tuesday in the most explicit terms yet that Ukraine is unlikely to realize its goal of joining NATO, and he said Russia’s demands for ending the war were becoming “more realistic.” As the conflict between Russia and Ukraine easing off, leading BTC price to an aggressive upward movement.
Elon Musk – “I’m Not Selling My Bitcoin”
The richest man in the world, Elon Musk discussed rising inflation and its impact on assets in a Twitter thread on Monday. He tweeted that he still owns and “won’t sell” his Bitcoin, Ethereum and Dogecoin—advising people not to hold dollars when inflation is high. His tweets seemed to confirm that he considers BTC as a safe haven asset which also boosted the Bitcoin price.
BTC Technical Analysis
According to Bexplus chief analyst Justin Kwok, BTC has been supported by an ascending trend line since late January. And it formed the “bullish engulfing” pattern on March 14, which increases the possibility of a short-term price rising in the near future. Moreover, BTC price has crossed above both MA20 and MA 50 lines, while RSI is trading above 50, making BTC price have a positive bias overall. $42,000 will be the next resistance to clear.
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Both Fundamental and technical suggested a potential bullish run in BTC price, and investing BTC with a proper instrument can maximize our profits.
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