- Bitcoin’s resilience amid market shifts indicates its evolving independence and reduced volatility potential in 2024.
- The Federal Reserve’s recent policy meeting and Jerome Powell’s stance have influenced Bitcoin’s movement.
- Experts are also commenting on BTC’s volatility potential.
Bitcoin’s resilience and evolving independence in 2024 are being tested as the Federal Reserve’s recent policy meeting influences its movement. Experts weigh in on BTC’s volatility potential.
Fed’s Influence on Bitcoin’s Movement
The Federal Reserve’s recent policy meeting has stirred both criticism and compliments. Particularly noteworthy was Jerome Powell’s indication that a ‘rate hike’ is unlikely to be the central bank’s next move. The implications of this were felt across multiple sectors, especially on Bitcoin [BTC] and the cryptocurrency market. In fact, following the Fed statement, BTC briefly rose to $58K before quickly dropping again, indicating ongoing strong selling pressure.
Reactions from Executives
Joe McCann, Founder, CEO, and CIO of Asymmetric, on a recent episode of “Unchained,” highlighted Bitcoin’s potential bottom and reversal in market sentiment. He stated, “The day of the FED, Bitcoin finally cracked 59k and saw a brutal wash out. I think that there’s probably a good chance based on what happened with the price action, which is a more or less reversal in risk.” Since then, BTC has been attempting to close in on its all-time high again. At the time of writing, the cryptocurrency was trading at $62,372, up 1.5% in the last 24 hours.
Diverging Viewpoints
On the contrary, according to QCP, a Singapore-based institutional crypto-trading firm, the U.S Fed and QRA were “more dovish than expected.” It noted, ‘At FOMC, Powell said that the Fed is not looking to hike rates and announced the slowing of Quantitative Tightening (QT) from $60bn monthly to $25bn. For QRA, the Treasury will keep issuances for longer maturities unchanged, reducing fears of a spike in longer-term yields. This should help push down the USD rally, which is positive for risk assets.’
Bitcoin’s Way Forward
In conclusion, underlining Bitcoin’s newfound independence, Alex Kruger addressed that unlike 2023, BTC remains unaffected by events like those involving Israel, Iran, and economic reports. According to the exec, “If you think that there is a ‘fed put’ this is very good because it means equities won’t collapse therefore the probability of Bitcoin actually doing its own thing and imploding 80% becomes very dim.”
