FED Announcement Pushes Bitcoin Price Up, Will BTC Sustain Momentum?

Market expectations were met as the U.S. Federal Reserve (FED) announced an interest rate hike of 25 bps pushing Bitcoin into the green. The cryptocurrency was hinting at bullish price action during the week, as today’s Federal Open Market Committee (FOMC) closed in. Related Reading | Mike Novogratz: Bitcoin Price To Range Between $30k-$50k Throughout The Year At the time of writing, Bitcoin trades at $41,300 with 5% profits on the last day. BTC’s price was able to break above this price point after a brief period of volatility as FED Chair Jerome Powell began its intervention. BTC’s price reacted to the upside and could continue on this trajectory in the short term, as the FED met market expectations. In the medium term, according to Material Indicators (MI), the FED projects 7 rate hikes that hint at a potential hawkish approach in monetary policy. This could translate into a headwind for BTC’s price and the crypto market. The U.S. financial institution is determined on reducing inflation which currently stands at a multi-decade high. However, reducing inflation could prove difficult in the current macro-economic environment with the war in Ukraine and supply chain obstacles. Bitcoin’s current price action moves in tandem with MI’s analysis. Expecting a rally in the short term, the analysts are still reticent to call in a BTC’s price bottom. Sharing the chart below, MI added: Although Bitcoin has been testing the 200 MA...