Bitcoin (BTC) back above $49,000 as Fed commentary alleviates market concerns

  • The market thinks the Fed’s tapering plans are less aggressive than expected resulting in a good recovery post the meltdown.
  • Bitcoin (BTC) price rebounds to climb back above $49K but a push above $53K will put a clear picture for the bull run to continue.

On Wednesday, December 15, the world’s largest cryptocurrency Bitcoin (BTC) was back above $49,000 after a crucial Federal Reserve meeting. The U.S. Central Bank stated that it would certainly speed up its stimulus tapering plan, however, prefers to keep the interest rates low.

Related: Bitfinex bids hint at Bitcoin price reversal post Fed commentary expected this Wednesday

The Federal Reserve hinted that it would increase the benchmark rates three times come next year. The fear across the traditional equity market and the crypto market eased off as analysts had predicted more aggressive moves. After a weak show over the last week, the equity benchmark also jumped on Wednesday, December 15. Speaking to CNBC, Jim Caron, a senior portfolio manager and chief strategist at Morgan Stanley Investments said:

From an equity perspective, now they just have to focus on earnings, margins and growth. It’s kind of a sigh of relief to the equities market who thought it might be much more aggressive. It’s kind of what we were thinking anyway.

Along with the crypto optimism, renewed optimism was seen around the crypto space as well! The Bitcoin price jumped to $49,500 levels on Wednesday and has been consolidating at around $49K since then.

As of press time, Bitcoin is trading 1.24 percent up at a price of $48,725 with a market cap of $921 billion. Bitcoin has remained under significant pressure for the month of December and is down nearly 20 percent so far. Hopefully, this positive news will bring renewed optimism to Bitcoin investors.

The bull market continues for Bitcoin

Market analysts have turned positive once again as Federal Reserve keeps interest rates unchanged. Popular crypto analyst, Michaël Van de Poppe writes:

FED keeps its interest rate at 0-0.25% as it is committed to employing the full range of instruments available to help the US economy. Which means. The bull market continues for Bitcoin.

Previously, Poppe also stated that the bottom for Bitcoin was formed already on December 4. Thus, he strongly believes that Bitcoin shall be heading to the north going ahead. Poppe also believes that the correction is done for Ethereum which has also jumped above $4000 levels.

Another popular market analyst Will Clemente also shared a similar perspective. Before the Federal Reserve meeting, Clemente said that there’s too much panic around and this FOMC meeting can turn into ‘sell the rumor, buy the news’ kind of event, something that we saw happening this Wednesday.

However, Clemente noted that he’s not rushing in to buy BTC at the current levels. As per his on-chain data analysis, Clemente believes $53K to be a fair entry point. “My gut has been telling me to buy BTC, but sticking to my plan to be a buyer at $53K confirmation. Must follow plan,” he said.

About Author

Bhushan is a FinTech enthusiast and holds a good flair for understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his free time, he reads thriller fictions novels and sometimes explores his culinary skills.

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