recent surge in Bitcoin And Ethereum The prices have caught the attention of many investors and traders, with both cryptocurrencies making significant gains in value over the past few months.
However, with the upcoming interest rate decision US Federal Reserve (FOMC) has given rise to uncertainty and speculation as to how it will affect the crypto market.
bitcoin (btc)The world’s largest cryptocurrency managed to regain its charm on Wednesday morning, hitting a 9-month high above $28K as traders patiently await the outcome of the US Federal Open Market Committee (FOMC) meeting , which could result in 25 basis points. Increase in interest rate.
Meanwhile, the second largest cryptocurrency, Ethereum, has seen substantial growth with a gain of 3.50% in the past 24 hours.
Many famous cryptocurrencies including Dogecoin (DOGE) And Litecoin (LTC), also managed to land in Sag. At the time of writing, the global crypto market cap was $1.18 trillion, representing a 2.20 percent 24-hour increase.
Bitcoin rebounds up to 40% amid collapse of global financial institutions
Bitcoin is up over 40% mainly due to the collapse of major banks. This has caused investors to lose faith in the financial system and turn to bitcoin as a more reliable alternative.
Bitcoin has reached a new high of $28,000, the highest since June 2022. As a result, people have come to regard bitcoin as more trustworthy than banks.
As a result, bitcoin is growing in popularity as more people buy it while it is still relatively affordable, and institutions attempt to keep up with the growing demand.
It is worth emphasizing that bitcoin is a decentralized digital currency that is not controlled by central banks or financial institutions, which has earned it a reputation as a safe-haven asset during economic downturns.
Bitcoin’s rapid rise in value due to several significant bank failures underscores the growing importance of decentralized digital currencies in today’s financial landscape.
As more organizations and individuals seek bitcoin as a viable alternative to established financial systems, its popularity is expected to grow in the coming months.
Fear and Greed Index Suggests Bitcoin Investors to Remain Confident
It is noteworthy that the Fear and Greed Index is a tool for investors to measure their sentiment towards bitcoin and the crypto sector. However, the values vary from 1 to 100, with 1 indicating that investors are extremely fearful and 100 indicating that they are fairly confident.
According to recent analysis, the fear and greed score for bitcoin currently stands at 68, which is the highest it has been this year. This shows that investors are quite optimistic about the future of bitcoin and expect its value to rise further.
FOMC meeting and Federal Reserve interest rates may affect bitcoin price
Traders are closely monitoring the upcoming Federal Open Market Committee (FOMC) meeting, which is scheduled for later in the day. The decision on US interest rates by the Federal Reserve could have an impact on the price of bitcoin, and hence, market participants are eagerly awaiting the outcome of the meeting.
It is important to note that the Federal Reserve raised interest rates several times in 2022 to combat rising inflation. However, in December that year, he reduced the rate hike to 0.50% and then to 0.25% in February 2023.
Subsequently, Fed Chairman Jerome Powell suggested that due to the strong performance of the economy, interest rates may need to be raised more than initially anticipated.
As a result, the cryptocurrency price declined, with bitcoin plunging below $22,000.
The current global financial crisis may affect the Federal Reserve’s decision to raise interest rates as planned, and they may even consider cutting them. If interest rates are decreased, it could result in an increase in the value of bitcoin.
bitcoin price
current price of Bitcoin at $28,300 with a 24-hour trading volume of $35.1 billion. In the last 24 hours, the value of bitcoin has increased by 1.50%.
As of Wednesday, the BTC/USD pair is consolidating near the $28,000 range after overcoming the $27,750 resistance. If this bullish trend continues, bitcoin price could potentially climb towards $29,250 or even $30,700.
If bitcoin breaks the $26,700 or $25,200 support, the next level of support lies at $23,150.
However, despite the bearish potential, the overall trend for bitcoin remains bullish due to the formation of bullish engulfing candles. Let us keep an eye on the US FOMC meeting to determine further trend in the market.
ethereum price
The current price of Ethereum is $1,800, with a 24-hour trading volume of $10.7 billion. Ethereum is up about 4% in the past few hours. Ethereum is currently struggling to break the $1,800 resistance and is stable near the $1,700 support area.
If the ETH/USD pair manages to overcome the $1,800 level, it is expected to face resistance at the $1,900 range.
The ETH/USD pair is expected to find support near $1,700 or $1,620.
Cryptocurrencies to Watch in 2023
Check out Cryptonews’ Industry Talk team’s curated list of the top 15 altcoins to watch in 2023. The list is regularly updated with new ICO projects and altcoins, so be sure to check back often for the latest updates.
Disclaimer: The Industry Talks section features insights by crypto industry players and is not part of the editorial content of 0x0news.com.
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