Jump to content

Bitcoin Advances Along With U.S. Futures Ahead of Fed Meeting


Recommended Posts

Bitcoin Advances Along With U.S. Futures Ahead of Fed Meeting

Bloomberg_new.pngCryptocurrencyJan 26, 2022
 
 
Bitcoin Advances Along With U.S. Futures Ahead of Fed Meeting© Reuters

(Bloomberg) -- Bitcoin kept regaining ground on Wednesday, mirroring an advance in U.S. equity futures ahead of a pivotal Federal Reserve decision that will shape expectations for monetary tightening. 

The world’s largest cryptocurrency by market value advanced close to $38,000 at 2 p.m. in Hong Kong, its highest level since Jan 21, when a selloff in virtual coins and other risky assets accelerated sharply. 

Bitcoin is recovering from a swoon that saw it dip below $33,000 on Monday, more than 50% off its November peak, prompting some analysts to point to $30,000 as a key support level. That’s a threshold Bitcoin hasn’t breached since July. 

Crypto’s correlation with equities strengthened in recent weeks as investors reacted to the prospect of tightening U.S. monetary policy by dumping high-priced tech stocks and digital tokens alike. Bitcoin’s moves in tandem with the Nasdaq 100 and the S&P 500 reached an all-time high this month, buoying confidence that one of the world’s more volatile major assets could become more predictable in future.

“Markets may have already priced in rate hikes,” Fadi Aboualfa, head of research at Copper co., said in an email Wednesday. “With the latest market selloff, I would expect that the Fed softens its tone as to stem any further panic. Bitcoin will follow the general market sentiment at this point.”

The Fed is due to finish its two-day meeting on Wednesday, with a policy decision from Chair Jerome Powell shortly afterwards. Bloomberg Economist Anna Wong expects the committee to keep rates steady and maintain the current pace of tapering, while telegraphing a rate hike for March.

“The overall sentiment in crypto is let’s try and settle in a range and do short term trading or find dislocations,” said Todd Morakis, co-founder of digital-finance product and service provider JST Capital, in an email Wednesday. “There are some bargain hunters here, but most of the people have been waiting for a time to invest in crypto and will continue to buy quality coins as the market moves down.” 

©2022 Bloomberg L.P.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      21,641
    • Total Posts
      91,936
    • Total Members
      41,927
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    1sttimetrader
    Joined 27/03/23 15:37
  • Posts

    • Look Ahead to 28/3/23: Australia retail sales; Ocado, Walgreens Boots Alliance, Micron results Earnings take centre stage on Tuesday with results from Micron Technologies, Walgreens Boots Alliance, Ocado, and Bellway. Watch AUD/USD ahead of Australian retail sales data. Angeline Ong | Presenter, Analyst and Content Editor, London | Publication date: Monday 27 March 2023              
    • #EURUSD: Peculiar PatternI spotted a cup & handle pattern on ⚠️EURUSD on 1H time frame.1.0777 - 1.0783 is its neckline.If the price breaks and closes above that, I will expect a bullish movement.Goals will be 1.0843 / 1.0894If the price sets a new low, the pattern will become invalid.
    • Joshua, where next with this trade, have you closed your position following the continued slide since 13th March?
×
×
  • Create New...