The US Federal Reserve plans to implement a ‘Hike and Pause’ policy, resulting in a rally in Bitcoin price and the broader cryptocurrency market following the Fed rate hike.
List Your Profile Links On CryptosHeadlines.com
“Become a Supporter of CryptosHeadlines.com! Send us your name and social profile links, and we will add your name along with your profile links to the Supporter Page as a proud supporter of CryptosHeadlines.com.
Supporter Page Link
The US Federal Reserve is expected to raise interest rates by 25 bps in the FOMC meeting on July 26. However, traders are more focused on the possibility of a pause by the Fed rather than the rate hike.
A dovish stance from the Fed is anticipated to bring positive sentiment to the markets, leading to an upward movement in Bitcoin and Ethereum prices.
JPMorgan’s trading desk predicts a “hike and pause” outcome from the FOMC meeting, which is expected to boost the market, as reported by Bloomberg.
During the second-quarter earnings season, the Fed’s decision to either pause or confirm one more hike is likely to bring additional upside momentum. Furthermore, the falling headline inflation and jobs data aligning with the Fed’s expectations suggest a potential halt to rate hikes.
Wall Street banks, including Morgan Stanley, Goldman Sachs, Bank of America, Citigroup, and Wells Fargo analysts, project a 25 bps rate hike and pause, and a potential rate hike later in the year. According to the CME FedWatch Tool, there is a 99% probability of a 25 bps rate hike.
Dow and S&P 500 futures are up approximately 0.1%, and Nasdaq 100 futures remain flat ahead of the US Fed’s crucial rate hike decision. Treasury yields, oil prices, and the US dollar index (DXY) are declining, with DXY moving to 101, signaling potential upside in Bitcoin and other cryptocurrency prices.
Bitcoin and Ethereum Rally
Renowned analyst CredibleCrypto suggests that Bitcoin’s price has been following a pattern since hitting its bottom at $15,000, and anticipates that the next impulse is approaching.
Bitcoin Price In Daily Timeframe. Source: CredibleCrypto
Michael van de Poppe, Rekt Capital, and Crypto Tony, among other popular analysts, share a bullish sentiment, anticipating a Bitcoin price rally following the Fed rate hike.
#Bitcoin | Expanding onchain activity can be seen when the monthly average of new wallets (green) exceeds the yearly average (grey), which suggests improving network fundamentals and growing utilization.
After a short contraction, $BTC on-chain activity is once again expanding! pic.twitter.com/ThBm8RIozO
— Ali (@ali_charts) July 25, 2023
BTC price increased by 0.5% in the past 24 hours, currently trading at $29,278. The 24-hour low and high were $29,097 and $29,382, respectively. Meanwhile, ETH price is trading above $1,850, rebounding from the support level.
XRP and Dogecoin (DOGE) prices are anticipated to keep rising, leading the way for altcoins’ recovery.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
Join Cryptos Headlines Community
Follow Cryptos Headlines on Google News and Threads App
Author
