Bitcoin Hits New High in 2023
The price of Bitcoin (BTC) has reached a new high for the year 2023, nearing $40,000. Currently trading at $38,919 with a market cap of $761 billion, Bitcoin’s upward momentum continues.
Fed Signals No More Rate Hikes
In light of positive economic data and slowing inflation in the US, Federal Reserve Chairman Jerome Powell hinted that there will be no future rate hikes. This news has further paved the way for Bitcoin to potentially reach $40,000, with some experts predicting it could happen soon. A Matrixport report even suggests that Bitcoin could hit $60,000 before the next halving in April 2024.
According to on-chain data provider Santiment, Bitcoin almost touched the $39,000 mark following Powell’s announcement. The increased focus on Bitcoin instead of alternative cryptocurrencies indicates a sense of fear in the market, often associated with sustained price increases.
Investors Advised to Accumulate Bitcoin
Veteran investors like Robert Kiyosaki are advising people to accumulate Bitcoin as a hedge against the looming recession in 2024. Furthermore, many analysts predict interest rate cuts to begin in the first half of 2024. However, Powell cautioned against premature speculation and stated that further policy tightening may be necessary if appropriate.
Bitcoin Withdrawals from Exchanges
Since November 17, over 37,000 BTC worth $1.4 billion has been withdrawn from exchanges, indicating a trend of investors choosing direct custody of their coins. This preference for long-term holding suggests strong demand and diminishing sell-side pressure. It may also be influenced by Binance’s recent guilty plea. Additionally, anticipation is building around the launch of a spot exchange-traded fund (ETF) in the US.
Historically, exchange outflows have coincided with local price lows, suggesting a potential medium-term price increase.
Momentum Boosted by Fed Governor’s Remarks
Federal Reserve Governor Chris Waller’s comments about an economic slowdown and the importance of appropriate policies have contributed to positive sentiment around Bitcoin. This has further fueled the momentum for Bitcoin, driving its price upwards.
Hot Take: Bitcoin Continues to Surge Amid Favorable Economic Factors
Bitcoin’s recent surge to new highs in 2023 is supported by favorable economic factors such as the Federal Reserve signaling no more rate hikes and the anticipation of interest rate cuts. Investors are advised to accumulate Bitcoin as a hedge against future uncertainties, leading to increased demand and withdrawals from exchanges. With positive sentiment surrounding Bitcoin and the potential launch of a spot ETF, the cryptocurrency’s momentum is expected to continue.
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