- The Federal Reserve minutes revealed that the commissioners were concerned about cutting interest rates too early, as inflation hasn’t yet decreased as predicted.
- The US’s tightening monetary policies could affect the crypto market liquidity, despite the fact that Bitcoin has seen a rise in demand from ETF funds.
The Bitcoin (BTC), price has been consistently above $50,000 over the last seven days. This confidently returns $1 trillion of market capitalization. After the US approved spot Bitcoin ETFs earlier in the month, institutional investors have increased demand for the flagship coin. The spot BTC ETF frenzy has waned, as shown by the decline of non-zero wallets by over 729k since last month.
Bitcoin’s macro bull-cycle is still at its infancy, and PlanB analysts predict that Bitcoin will reach a new record high by the end of this year. In a CNBC interview on Wednesday, FundStrat’s head of research Tom Lee stated that Bitcoin may reach $150,000 by the end of this year.
FOMC Minutes Signals Possible Hard Times Ahead
On Wednesday, the United States Federal Reserve published detailed minutes of its FOMC meeting. Fed is worried about cutting rates too quickly, since interest rates are not showing signs of a decline soon. Fed rates currently range between 5.25 to 5.50 percent.
Earlier, the Fed signaled several rates cuts this year. However, recent CPI figures showed that the high level of inflation is not going away. The Fed will not raise rates to avoid further straining an economy that is experiencing a proliferation of illegal immigration, which has increased the unemployment rate.
Bitcoin faces correction
In the last week, Bitcoin’s price has been consolidating between $50.600 and $52.800. The mother coin found a good support level at around $50.6k. But the TD Sequential Indicator has flashed a buy signal on the three-day chart. Crypto analyst Ali Martinez thinks that Bitcoin’s price could face a 10 percent correction within the next few months.
The TD Sequential indicators shows a sell on the #Bitcoin 3-day chart. The last two times that this indicator indicated bearish is important to remember. $BTC A 10% correction in price was experienced!
If you plan to join me, please go to @coinexcom, and sign up using… pic.twitter.com/HeHulw5Xni
— Ali (@ali_charts) February 21, 2024
Ethereum Jump Triggers – Crypto Cash Rotation
According to Santiment, a market intelligence platform that tracks cryptocurrency trends, the rise of AI altcoins will signal the arrival of the altseason in the next few weeks. The Ethereum network also has a record number of non-zero address, which is more than 114.95 millions. Ethereum is currently trying to reach $3,000 due to the spot Ether ETF frenzy.
In the last few days, crypto cash has accelerated its rotation from Bitcoin to other altcoins. Binance coin (BNB), for example, has been rising above $380 in spite of Bitcoin’s struggle to maintain a bullish outlook.
Ripple XRP is under siege
XRP-backed Ripple has faced a significant barrier of 54 cents. A large-cap altcoin may be left behind by the mass adoption because of the ongoing SEC Ripple suit. Ripple continues to improve its On-Demand Liquidity programs to ensure healthy market adoption. According to latest data from the market, XRP’s price dropped by 2 percent during the past week to be valued at around 54 cents. .
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
Source: www.crypto-news-flash.com