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Bitcoin Price Surge Following Fed Policy Announcement
The Bitcoin (BTC) price is on the rise following the latest Fed policy announcement, where the bank decided to keep interest rates unchanged at 5.25-5.5% for the fifth consecutive meeting and projected three rate cuts in 2024.
Market Reaction to Fed Decision:
- Fed leaves rates unchanged for the 5th straight meeting
- Fed maintains expectation of 3 interest rate cuts in 2024
- Core PCE inflation forecast for 2024 raised to 2.6%
- Fed acknowledges that inflation “has eased but remains elevated”
Following the announcement, Bitcoin was trading in the mid-$67,000s, showing a daily increase of around 9%. The price of BTC has surged over 10% from earlier session lows below $61,000.
Market Outlook and Bitcoin Price Projection:
Despite recent profit-taking sell pressure after reaching record highs above $73,000, Bitcoin’s recovery from intraday lows indicates strong bullish momentum.
- Macro tailwinds and potential net spot Bitcoin ETF inflows could drive Bitcoin back to record highs
- Confirmation of a breakout above the recent downward trend channel is crucial for bullish sentiment
- A close above $67,000 would further boost confidence in a bullish trend
Bitcoin’s recent pullback from record levels, reaching a 17.5% correction, is not uncommon during bull markets. The current correction seems to be nearing maturity, suggesting a potential retest of record highs in the near future.
Future Price Speculation:
Despite recent fluctuations, Bitcoin remains on track to potentially reach $100,000 within the next year.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
