Bitcoin’s price rally is currently taking a breather around $74,000. Investors are waiting in suspense for the outcome of the US central bank (the Fed) meeting on Wednesday.
What Will Influence the Price?
- The Fed’s message: It is widely expected that the interest rate itself will remain the same. However, the market is highly focused on what Fed Chairman Jerome Powell will say about the future.
- The bad scenario (for crypto): If the morning’s inflation numbers (PPI) are unexpectedly high and Powell sounds strict (“hawkish”) about fighting inflation in the afternoon, it spells bad news. This combination suggests interest rates will stay higher for longer, making risky investments like Bitcoin less attractive.
- The good scenario: If Powell treats the rising oil prices (fueled by the war in Iran) as just a ‘temporary shock’ rather than long-lasting inflation, investor confidence could bounce back, allowing the Bitcoin rally to continue.
Short-term Expectation Until the central bank provides more clarity, analysts expect Bitcoin’s price to be capped and bounce around between $74,000 and $76,000 for the time being.
This can mean that altcoins can rise.
⚠️ RISK WARNING & AI DISCLOSURE
- This information is generated by Artificial Intelligence (AI) and complex algorithms. While advanced, these systems can contain errors or inaccuracies and are for educational purposes only.
- Technical analysis provides no guarantees; this information is purely informative.
- All discussed scenarios are hypothetical and do not constitute predictions or expectations.
- Past performance is not an indicator of future results.
- This is not financial advice and is not intended as a call-to-action for the reader.
- No implicit direction is claimed, and no specific behavior of market participants is suggested.