The decision of the United States Federal Reserve has been closely watched by crypto investors due to its potential impact on the price of Bitcoin. Contrary to expectations, the Fed chose to remain neutral in its efforts to curb inflation. In light of this decision, Didar Bekbauov, the Founder and CEO of Bitcoin joint mining company Xive, has provided his insights on what this means for the Bitcoin price.
Bekbauov explains that many experts in the financial industry predicted that the US Fed would not hike interest rates, and their prediction turned out to be correct. The central banking system opted to keep rates within the range of 5.25-5.5%, which has been maintained for the past 22 years. According to Bekbauov, this decision actually makes mainstream financial assets less appealing to investors. As a result, the capital retention triggered by this move could drive the Bitcoin price and potentially lead to a rally in the coming weeks. Therefore, the Fed’s decision is seen as positive for the cryptocurrency.
The analysis provided by Bekbauov aligns with the response of the Bitcoin price to the Fed’s decision. Although there have been some dips, the price of Bitcoin has remained within a range of $26,000 to $27,000, surpassing the levels of the previous week.
Looking ahead, Bekbauov expects the Fed to maintain a dovish approach to interest rates for the rest of the year. He believes that this will provide support for Bitcoin at $35,000 and potentially push the price above the year-to-date (YTD) mark of $31,700. Additionally, the CEO anticipates that the upcoming halving and the hype surrounding the Spot Bitcoin ETF will contribute to a rally. He states, “Bitcoin’s network promises are also a major trigger to boost growth in the mid-term as the hype surrounding the ETF and halving remains on the horizon to guide investors’ interest moving forward.”
Currently, BTC is holding steady above the $26,600 support level, indicating that bulls have regained their confidence. However, there has been a 6% decline in the asset’s daily trading volume, which could suggest a decrease in interest leading into the weekend.
In conclusion, the Fed’s decision to remain neutral has been seen as a positive development for the Bitcoin price. Bekbauov’s analysis suggests that the capital retention triggered by this decision could drive the price higher in the coming weeks. With expectations of continued support from the Fed, as well as upcoming events like the halving and the Spot Bitcoin ETF, there is optimism for a rally in the future. However, the decline in trading volume raises some concerns about waning interest in the short term.
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