The trading price of Bitcoin has been hit hard by the FTX crash ever since it took place on November 7. Since then, Bitcoin has been trading below the $17,500 mark and it even ended up plunging to around $15,500.

US Feds have Helped BTC

Since the FTX crash, the trading price of BTC struggled to rise over the $16k mark. However, the bears proved to be a great challenge for the bulls.

Every time the bulls attempted to form a strong rally, the bears turned it into a selling spree with their selling momentum.

Just when it seemed that Bitcoin was headed in the wrong direction, the US Feds made an announcement that saved Bitcoin.

The Feds announced that they will be lowering the interest rates from the month of January 2023. The decision came after recording a great drop in the inflation rates by increasing the interest rates by 75 bps for four months straight.

With the inflation rates coming under control, the Feds felt safe in lowering the interest rates.

How Did the Interest Rates Impact Bitcoin?

Due to the interest rates hike, the value of the dollar keeping growing in strength in the forex market. This meant that the dollar was gaining strength against the Bitcoin as well.

This continued to take place for a long time until the Feds confirmed they will no longer increase the interest rates with aggression.

As the announcement was made, the value of the dollar started to move in the bearish territory. The crypto trading experts confirmed that the price of Bitcoin started to move upward the moment the dollar declined.

Bitcoin is Flying High

The best thing for Bitcoin at the moment is the comments from the Feds. Every cryptocurrency broker is also telling their investors about the dollar price going down in the upcoming months.

This is because the interest rates will continue declining, and so will the value of the dollar. If that continues to happen, the BTC price will rise against the dollar.

With the interest rates and the inflation rates going down, the investors will have enough money to invest heavily into Bitcoin. This would help push Bitcoin over the $18k barrier and then eventually, up to $21,500.

Leave a Reply

Your email address will not be published. Required fields are marked *

Translate »