Bitcoin went slightly up amid the Fed’s decision to raise the key rate
The Federal Reserve raised the key rate to 0.25–0.5% for the first time since the end of 2018. By the end of this year, it could reach 1.9%. The reason is the maximum inflation over the past 40 years.
According to the American monetary authorities, the current geopolitical situation is capable of provoking an increase in consumer prices. For 2022, inflation is projected at 4.3%. Amid the latest news from the Fed, the price of bitcoin exceeds $40,700, according to Coinmarketcap data.
Earlier, Glassnode released a report stating that from November of last year to the end of January of this year, investors were actively accumulating BTC. But at this time, the rate of the crypto-coin was falling, Vladislav Antonov, an analyst at BitRiver, emphasized. The expert believes that there is no relationship between the stages of accumulation, sales and quotes.
“There is a zone when there were sales of bitcoin, and the price stood from June to mid-July 2021, after which the growth of the cryptocurrency resumed,” the analyst said.
We would like to remind the readers that in November last year, the first cryptocurrency updated its historical maximum, rising above the level of $69,000. At the beginning of this year, the price of bitcoin fell to $32,400 for the first time since July 2021 (a drop of more than 50%).
Antonov also voiced a forecast according to which, in the event of a spring sale of shares on the US stock market, bitcoin may also fall.
Currency.com crypto platform analyst Mikhail Karkhalev believes that another wave of panic sales may cover the crypto market. However, he does not rule out that a fall is likely before a rebound.
“I would not recommend focusing on short-term probabilities, you should always work long and buy out any drawdowns. In the entire history of the buy the dip strategy, it has never failed and always made a profit,” the expert noted.
Do you agree with the experts?