As a seasoned crypto investor with a keen eye on market trends and a long-term perspective, I find the recent FOMC meeting and its impact on Bitcoin an intriguing dance between positive news and cautious Fed rhetoric.
Inflation figures exceeded predictions on Wednesday, leading Bitcoin to surge momentarily. Yet, Fed Chair Powell attempted to curb the market’s enthusiasm through his usual verbal interventions, causing a subsequent decline in Bitcoin’s value.
FOMC meeting ups and downs
Prior to the Federal Open Market Committee meeting, which commenced on Tuesday, markets exhibited signs of apprehension. During this session, Bitcoin experienced a decline of approximately 5%. This equated to a loss of roughly $3,450 in value.
On the final day of the Federal Open Market Committee (FOMC) meeting, which fell on a Wednesday, surprise inflation data was released, exceeding market predictions. In response, Bitcoin experienced a significant surge and returned to its previous resistance level of $70,000.
When Fed Chair Powell stepped up to speak at the conclusion of the monetary policy meeting, it was likely expected of him to adopt a cautious stance in his address, considering that inflation figures had only slightly surpassed projections. The Federal Reserve aimed to prevent another market surge following their previous efforts to curb inflationary pressures.
Instead of his earlier prediction of three rate cuts, Powell persisted in advocating for just one cut this year.
The cryptocurrency market showed renewed instability today, with Bitcoin taking a dip and returning to the $67,000 mark as support. This represents a bounce back from the nearly reached $66,000 threshold hit just a few days ago.
$66,000 line in the sand for miner profitability
The price level of $66,000 holds great importance for Bitcoin miners. According to a post made by entrepreneur and value investor Mike Alfred on his X account last Wednesday, miners view this amount as the lowest point at which their operations remain profitable, as they would incur losses at lower prices.
It’s important to note that although the current price level is significant, there’s a possibility that it may drop even further. However, only the top-performing miners equipped with the latest technology will be able to withstand such a situation.
Macro picture still looks great
From a broader perspective, it’s worth appreciating the impressive shape of the Bitcoin price chart when viewed from a distance. This current period of sideways movement lays the groundwork for an imminent surge in value. The bull flag formation, which is still underway, strongly suggests that Bitcoin will eventually break out and rise significantly.
If some investors are hesitant about holding Bitcoin ($BTC) due to its price volatility, they might be overlooksing its potential benefits. Few can consistently profit from short-term Bitcoin trading, but historical data suggests that those who hold it over the long term have the possibility of substantial returns.
Read More
Sorry. No data so far.
2024-06-13 16:09