Today the crypto and bitcoin markets are exhibiting positive growth, contrary to the early reaction of the markets to the US Federal Reserve (Fed's) FOMC meeting. During this meeting the Bitcoin price dropped from $28,800 to $28,250, however by the close of the meeting the sentiment had already begun to have optimism. This is due to the potential for a pivot in the rate hike at the next FOMC meeting in June. As of this meeting the majority of FOMC participants suggested that the final rate of the tightening cycle would be between 5% to 5.25%. Even JP Morgan’s Davis believes the current rate hike to be the last in this cycle and expects to see at least three rate cuts from the Fed by year-end.

With risk assets traditionally being the most benefited by a dovish monetary policy, it stands to reason that Bitcoin and other crypto markets would also surge during such a scenario. In addition, it has been speculated that the recent banking crisis issue in the US has had a significant influence over the current market with news of the 60% share fall of Los Angeles-based PacWest sparking intense speculation.

The Dollar Index had also taken a dive yesterday, lowering to just above the multiple month support at 101. Any further reduction of this low could benefit Bitcoin in a major way due to the inverse correlation it has to the DXY. All of this considered means that a successful sweep of the open interest seems necessary if the $30,000 marker is to be reached, followed by the maintaining of the $28,800 support. Currently the Bitcoin price is at a comfortable $29,086 which looks to see an increase over the coming days.



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