Bitcoin saw a sharp surge this week, rising to $30k, as positive sentiment returned to the cryptocurrency market. The price jump came after Federal Reserve Chair Jerome Powell hinted that interest rate hikes may start slowing soon during a Thursday speech.
- Bitcoin price surged to around $30k after Fed Chair Jerome Powell hinted that interest rate hikes may slow down or pause soon. This boosted investor sentiment.
- XRP price jumped over 6% to above $0.50 after US regulators dropped criminal charges against Ripple executives in an ongoing lawsuit.
- Traders are monitoring Bitcoin price action around the $29,500 level, as long positions currently outnumber shorts 4 to 1, indicating potential for a retracement.
- Analysts suggest if Bitcoin can break above $30,000 convincingly, it could target $35,000 next. The recent price action shows bullish signs like rounding bottom reversals.
- Altcoins like Solana also saw significant gains of around 10%, signaling a potential broader cryptocurrency market breakout emerging. Overall sentiment seems to be turning positive.
Powell stated that the Fed is “strongly committed” to bringing down inflation, but also recognizes the risks of tightening policy too much. His dovish tone was a welcome shift for investors, sparking a rally in riskier assets like stocks and cryptocurrencies.
Bitcoin had been trading rangebound between $18,000-$25,000 for much of 2022 as the Fed aggressively hiked rates to combat high inflation. But Powell’s latest remarks suggest the central bank is conscious about potential overtightening, given uncertainties in the economy.
This was the sign bullish crypto traders were waiting for. Bitcoin quickly rallied from around $28,000 to $30k as traders piled back into the market. Strong technical signals like bullish engulfing candles on the daily chart added further momentum.
Notably, Bitcoin’s gains came even as yields on 10-year Treasuries rose to nearly 5% – a signal that crypto is decoupling from traditional markets. Investors are increasingly treating BTC as an inflation hedge and store of value.
The Fed pivot couldn’t have come at a better time for beaten-down crypto markets. Just a day prior, the SEC also dropped criminal charges against Ripple executives, ending a long-standing lawsuit. The news sent XRP surging over 6% higher.
A daily close above $30k, this key resistance could open the doors for a rally to $35,000, where bulls can expect stiff opposition. The crypto fear and greed index has reset from “extreme fear” to neutral levels.
The nascent crypto market rebound is being led by Bitcoin, but altcoins are following close behind. Ethereum, Solana, Dogecoin and others posted strong 10%+ gains as bullish momentum spreads across crypto assets.
While risks remain, the latest Fed and SEC developments are being viewed as a pivotal point for reigniting crypto’s next bull market. With Bitcoin’s halving event approaching in 2024, investors seem to be positioning early for the next supply shock amid improving sentiment.