The latest FOMC meeting has been a point of concern for the crypto market’s movements. Federal Reserve Chairman Jerome Powell reiterated that the central bank remains data-dependent, indicating that further interest rate hikes are not ruled out.Powell emphasized that core inflation (both PCE and CPI) remains the primary focus. He also said that FED will stop raising rates way before the inflation target of 2% is reached.
Bitcoin experienced a slight dip ($29,100) in response to this Powell statement, but quickly rebounded, seemingly following the trajectory of traditional financial markets. Notably, the Dow Jones rose for a 13th consecutive day after the FOMC meeting yesterday, signaling investors’ confidence in bullish market sentiment.
Meanwhile, the FedWatch tool currently predicts a slight majority in favor of a first-rate cut in March 2024, however, Fed Chair made it clear yesterday in a hawkish tone that the key rate must remain high for a long time because the effects need time to have an impact on the economy.
As of now, at the time of writing this article, BTC is trading at $29,450 with a market capitalization of $572 Billion (up by 0.7% over the last 24 hours).