Bitcoin Fate Tied To March Fed Rate Cuts: Rally Or Retreat

On the most recent Friday, Jan 26, Bitcoin saw a substantial surge, driven by the resilience of the US stock markets. Currently, Bitcoin is trading at $42,185, with a market capitalization of $827 billion, and it appears ready for its next potential uptrend, aiming for $43,000.

This week signifies a pivotal moment as the Federal Reserve prepares to announce its first interest rate decision for 2024. Data from the Chicago Mercantile Exchange (CME) suggests a robust consensus, with 96.9% of indicators pointing to the anticipation of interest rates remaining unchanged.

Yet, the expectation surrounding the forthcoming decision in March indicates a change in sentiment, with a significant 47% likelihood indicating the possibility of a 25-basis-point interest rate reduction. Investors and analysts are attentively observing these developments, acknowledging the potential influence such decisions may exert on diverse sectors of the economy.

The March resolution holds immense importance, especially in light of the impending Bitcoin halving scheduled for April 2024. Implementing a rate cut before the halving could potentially offer a substantial uplift to the BTC price in the subsequent period.

Bitcoin ETF Debut: Impact On Values

Following the Federal Reserve’s announcement, the United States is set to unveil crucial economic information, notably the January unemployment rate. This rate plays a pivotal role as a metric, offering valuable insights into the overall health of the labour market and exerting influence on broader economic perspectives.

Throughout the week, market participants will be attentively observing these developments for indications regarding the direction of monetary policy and the economic landscape in the United States. The recent introduction of Bitcoin ETFs in the United States marked a significant moment in the history of the cryptocurrency community. Despite this, the value of BTC has faced downward pressure, reaching a monthly low of $38,000 in January.

According to CryptoRank statistics covering February 2011 to 2023, Bitcoin has shown an average profitability of 14.5%, closely followed by a median value of 12.2%.

Related Reading | https://btcpolitan.com/solana-jupiter-dex-480m-trading-and-memecoin-frenzy/

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.

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