Cryptocurrency enthusiasts marked a familiar milestone this week as Bitcoin rebounded and broke above the $29,000 level. The immediate cause of this surge was the rate hike from the United States Federal Reserve. Markets were already predicting that this announcement would be the final move in a tightening cycle, primarily due to the efforts of the Fed to reduce inflation and the difficulties of regional US banks in tighter financial conditions. While some leveraged Bitcoin futures positions were liquidated, the overall reaction from participants in the market suggests that this news has not caused much of a stir in the Bitcoin environment.

Other indicators such as OKX's BTC long/short ratio has shown that there has not been a substantial shift in the market sentiment of Bitcoin, although traders are keen to switch to a leveraged position. Options expiring in 7-180 days also display similar neutrality, with a 25% delta skew above 0, indicating an incline in premiums for bullish calls over bearish calls and vice versa.

In the short-term, Bitcoin appears to be on track to break higher, towards $31,000. This is dependent on external factors such as the US jobs report; positive results could further complicate the Fed's efforts to bring inflation under control, thus lessening the likelihood of further rate hikes.

In conclusion, Bitcoin has found stability again above $29,000 in light of the Federal Reserve's rate hike. The continued market neutrality reveals investors are content about the current bull run, although external events such as the US jobs report pose a potential threat.



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