The Fed met on Wednesday and decided to raise US interest rates by 75 basis points. After that, cryptocurrencies rose sharply. The value of the global crypto market rose 8% at the time of writing to $1.05 trillion. Bitcoin also experienced a similar increase in value. The leading cryptocurrency was up 8% in the last 24 hours to trade at $23,019. However, with the Fed’s concerns over for a while, analysts evaluated current prices. 4 Experts gave various predictions for Bitcoin’s price action.
Fed raises interest rates by 0.75
Bitcoin and Ethereum rose after the Fed announced a 75 basis point rate hike. They saw an increase in value of about 8% and 14%, respectively, during the day. Following the announcement of the rate hike, Fed Chairman Jerome Powell spoke about future rate hikes. Accordingly, Contrary to his previous speeches, Powell gave the impression that interest rate hikes would be lower. Thereupon, OANDA’s senior market analyst, Edward Moya, evaluated the rate hike. Moya said that an increase of 0.75 points in the coming months is still on the table. However, he did mention that it makes sense to reduce the rate hike at one point. Then, Moya outlined his views on how cryptocurrencies will be affected. According to him, the Fed’s latest rate hike has created optimism that the tightening is over. As such, he said it triggered a nice rally for risky assets like Bitcoin and altcoins. Additionally, he stated that it is no surprise that cryptocurrencies are on the rise, as tech shares soar.
“We do not know when the Bitcoin rise will occur”
Nick Heale, head of corporate consulting at GlobalBlock, talked about the correlation between Bitcoin’s price and technology stocks. The existence of correlation doesn’t mean it has to be, Heale said. Then he pointed out that it is difficult to predict when the mentioned situation will end. Heale said:
How accurate is it to predict when the reversal will begin in Bitcoin price? Maybe it will start from late 2022 to early 2023 or earlier, we don’t know. The complex mix of economic factors makes any BTC rise, market timing more difficult to predict.”
“What it takes for BTC to make a relief rally has been fulfilled”
Michaël van de Poppe posted three ideal materials for a “summer aid rally” on Twitter. The first of these three materials, Powell, is that he has become more dovish on monetary policy and more data-dependent. Second, the Ethereum Merge upgrade will be released in September. Third, the heavy impact on companies like 3AC, Celsius is already pricing in the market. Taking all this into account, Poppe predicts that the Bitcoin price could rise to $28,000 to $30,000. The famous analyst’s Ethereum prediction is at $ 2,400.
“It is possible that the worst is over for Bitcoin”
Crypto analytics firm Glassnode says the worst-case scenario for Bitcoin (BTC) drop may be over. In a new analysis, Glassnode looks at the 14-day, 28-day and 140-day timeframes of the MRGO indicator. Accordingly, recent data shows that Bitcoin has been in a bear market for months. According to the firm, the 140-day MRGO has produced consistently lower highs since March 2021. Moreover, it did not register a positive value in 2022 either. Hence, it reveals that the macro bearish market has been going on for 15 months. So the current market stands in favor of the bears. As we reported on cryptokoin.com, Glassnode says that the underlying trends are slowly rising. Accordingly, a long-term recovery is possible for Bitcoin. However, the firm warns investors that this may require additional time and recovery.
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