The Federal Reserve in the US hinted it could likely turn its focus to interest rate cuts in 2024, helping crypto token prices recover from its recent losses.
The crypto market had seen sell-offs and profit bookings in the time leading up to the last Fed policy meeting in the US. Traders were wary of the central bank’s stance on interest rates, as it directly affects the crypto market. On a positive note, Fed Chair Jerome Powell indicated they had completed the rate hikes. As a result, in 2024, central banks worldwide could see easing interest rates.
“Recent indicators suggest that growth of economic activity has slowed from its strong pace in the third quarter. Job gains have moderated since earlier in the year but remain strong, and the unemployment rate has remained low. Inflation has eased over the past year but remains elevated,” said the Federal Reserve’s FOMC statement.
The news led to a broad recovery in the crypto market. Bitcoin and other altcoins like BNB, XRP, and Solana saw steep hikes. Ethereum surged by over 5%, hitting an overall market cap of $282 billion. Others like Polygon and Avalanche also witnessed a rise.
With a major macro-event turning positive, Bitcoin could march ahead with greater support in the next couple of weeks. Investors could closely watch the $43,000 resistance for BTC during this week.
The crypto market had seen sell-offs and profit bookings in the time leading up to the last Fed policy meeting in the US. Traders were wary of the central bank’s stance on interest rates, as it directly affects the market and crypto token prices. On a positive note, Fed Chair Jerome Powell indicated they had completed the rate hikes. As a result, in 2024, central banks worldwide could see easing interest rates.
“Recent indicators suggest that growth of economic activity has slowed from its strong pace in the third quarter. Job gains have moderated since earlier in the year but remain strong, and the unemployment rate has remained low. Inflation has eased over the past year but remains elevated,” said the Federal Reserve’s FOMC statement.
The news led to a broad recovery in the crypto market. Bitcoin and other altcoins like BNB, XRP, and Solana saw steep hikes. Ethereum surged by over 5%, hitting an overall market cap of $282 billion. Others like Polygon and Avalanche also witnessed a rise.
With a major macro-event turning positive, Bitcoin could march ahead with greater support in the next couple of weeks. Investors could closely watch the $43,000 resistance for BTC during this week.
BTC/USD 1D price chart
Bitcoin is currently trading at around $43,000 on December 14, 2023, with BTC/USD trading higher by a margin of 4.4% in the last 24 hours. Bitcoin’s market cap was trading at around $839 billion.
BTC/USD is trading higher than its 20-day EMA (39,926.92), as BTC’s 24-hour volume was at around $25 billion. The crypto market cap increased by around 5.32%, trading above $1.61 trillion. BTC’s year-to-date returns are above 159.62%
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