- As of the time of writing, Bitcoin is trading at $38,729 with a 1.9% increase, and its market value is $761 billion.
- According to Santiment, after Federal Reserve Chairman Jerome Powell’s decision to maintain the current interest rates, Bitcoin (BTC) has almost reached $39,000.
- Experienced investors like Robert Kiyosaki suggest accumulating Bitcoin as a hedge against the upcoming recession in 2024 amid the current macroeconomic situation in the U.S. and worldwide.
The world’s largest cryptocurrency, Bitcoin (BTC), approached $40,000 on Friday, marking a new peak for 2023 and boosting positive sentiments!
Bitcoin Holds Steady Despite the Fed’s Statements
Bitcoin, the world’s largest cryptocurrency, reached nearly $40,000, marking a new high for 2023. As of the time of writing, Bitcoin is trading at $38,729 with a 1.9% increase, and its market value is $761 billion.
On Friday, Federal Reserve Chairman Jerome Powell signaled that there would be no interest rate hikes in the future. This, along with healthy economic data in the U.S. and slowing inflation, opened the way for Bitcoin (BTC) to approach $40,000; according to some analysts, this could happen very soon. Additionally, a report from Matrixport suggests that the price of Bitcoin could reach $60,000 before the next Bitcoin halving in April 2024.
According to on-chain data provider Santiment, after Federal Reserve Chairman Jerome Powell’s decision to maintain the current interest rates, Bitcoin (BTC) has almost reached $39,000. The focus on Bitcoin over alternative cryptocurrencies (altcoins) often indicates a widespread fear sentiment associated with sustained price increases.
However, in the current macroeconomic situation in the U.S. and worldwide, experienced investors like Robert Kiyosaki suggest accumulating Bitcoin as a hedge against the upcoming recession in 2024. Additionally, many market analysts predict that interest rate cuts will begin in the first half of 2024.
However, Powell, in his speech on Friday, issued a warning against it, saying, “It would be premature to conclude with a high degree of confidence that we have reached a sufficiently restrictive situation or when policy can be relaxed. We are ready to further tighten policy when needed.”
Bitcoin Outflows from Exchanges
According to Glassnode data, more than 37,000 BTC, with a value exceeding $1.4 billion, has been withdrawn from exchanges since November 17, indicating a preference among investors to hold their funds directly. This outflow indicates a long-term holding strategy and may be influenced by the recent confession from Binance. The holding trend, especially amid growing excitement around the expected launch of a spot exchange-traded fund (ETF) in the U.S., implies strong demand and decreasing selling pressure. Historically, exchange outflows have often coincided with local price bottoms and have been consistent with expectations of medium-term price increases.
Bitcoin’s momentum increased on Tuesday following statements from Federal Reserve Governor Chris Waller. Waller mentioned that recent data indicates an economic slowdown and suggested that appropriately positioning policies would contribute positively to sentiment around Bitcoin.
