Bitcoin Surges to $39,000 as Fed Chair Boosts Hopes of Policy Easing
Bitcoin (BTC) reached $39,000 for the first time since mid-2022 on December 1st after the United States Federal Reserve Chair, Jerome Powell, hinted at potential policy easing. In a speech at Spelman College, Powell stated that it would be premature to conclude whether the current restrictive stance on inflation has been achieved and when policy might ease.
Fed Narrative Remains Cautious, Markets Call for Pivot
The Kobeissi Letter, a financial commentary resource, highlighted that the Fed’s narrative has not changed since last year and that a long pause in policy is still likely. However, market sentiment remains hopeful for a pivot by the Fed. Bitcoin capitalized on this sentiment and reacted positively to Powell’s comments.
BTC Price Targets Extend Beyond $39,000
Popular traders in the crypto community expect Bitcoin’s price to continue rising. Daan Crypto Trades revealed the size of sell-side liquidity involved in the surge to $39,000. Keith Alan from Material Indicators shared an order book snapshot that showed significant resistance at $39,000 and $39,200. Traders predict that Bitcoin will close above $38,000 and reach at least $39,200 in the near future.
Hot Take: Bitcoin Gains Momentum as Powell’s Speech Boosts Sentiment
The recent surge in Bitcoin’s price to $39,000 was driven by positive market sentiment following Jerome Powell’s speech. Despite maintaining a cautious tone about inflation and policy easing, Powell’s remarks boosted hopes of a potential pivot by the Fed. Traders and commentators in the crypto community anticipate further price increases for Bitcoin in the coming days.
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