As the United States' Federal Reserve makes its latest interest rate decision, there is much speculation about how this will affect the cryptocurrency market, particularly Bitcoin. Recently, Bitcoin has been stuck in a bearish trend, leaving investors speculating if this trend will continue, or if a bullish reversal is likely. In this article, we will explore the factors that influence Bitcoin's price, analyze expert predictions, and look at market indicators to determine if the bear market may finally be coming to an end.

Interest rates have been raised by the Federal Reserve to combat inflation. The benchmark rate is now between 5% and 5.25%, up from almost zero in March 2022. Significantly higher rates have slowed industries like the housing market, contributing to the failure of three American banks. While Jerome Powell, chairman of the Federal Reserve, stated it may not be necessary to raise rates further, policies could be introduced that are evidence-based.

Central banks around the world, including in the UK and Europe, have implemented similar measures in response to the US rate increases. The higher cost of taking out debt, such as buying a home, could lead to lower demand and bring down prices. Inflation has slowed since the Fed's campaign began and, as of March, was at its lowest point in nearly two years, albeit still 5% above the 2% target the Fed aims for.

Bitcoin had been trading at around $28,100 prior to the announcement and, during the Asian session, had bounced off to nearly $28,766. Currently, the digital currency is facing resistance near the $29,295 mark. If the upward trend persists, Bitcoin could reach the next target of $29,975, potentially even heading towards the psychologically significant $30,000 price point.

In the four-hour chart, Bitcoin has fallen below the 50-day exponential moving average, indicating a strong bearish sentiment in the market. The RSI and MACD indicators suggest a possible downtrend and if the price falls through the crucial $27,600 support level, BTC could head towards the next support level of $27,200.

In conclusion, it appears that many factors will influence the future of Bitcoin's price. The US interest rate decision has made an immediate impact and is likely to be a critical factor in the cryptocurrency's future performance, though it is still uncertain whether this downturn will persist or if the bear market is coming to a close.



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