Bitcoin’s Price Rebounds on Possible Fed Rate Pause
Bitcoin’s price experienced a rebound, increasing by over 1.4% in the past 24 hours, reaching $43,071. Analysts suggest that this could be due to the possibility of a rate pause at the Federal Reserve’s next meeting at the end of January.
Possibility of Fed Rate Pause
In 15 days, the Federal Reserve will meet to decide on its monetary policy direction. The CME FedWatch tool indicates a high likelihood (97.4%) that the Fed funds rate will remain unchanged.
Bitfinex analysts believe that a rate pause would provide relief for the banking sector and stock market, potentially benefiting bitcoin. The central bank’s Summary of Economic Projections also suggests possible rate cuts throughout 2024 to support economic growth.
Increased Sell Pressure on Bitcoin
Despite the positive price movement, onchain metrics indicate increased sell pressure on bitcoin. Data from CryptoQuant shows a steady rise in bitcoin exchange reserves since December, with a 2% increase in the past month.
Hot Take: Bitcoin’s Rebound Supported by Potential Rate Pause
The recent rebound in bitcoin’s price may be attributed to the possibility of a rate pause at the Federal Reserve’s upcoming meeting. This news provides relief for the banking sector and stock market, potentially boosting bitcoin’s value. However, onchain metrics indicate increased sell pressure due to rising bitcoin exchange reserves. It remains to be seen how these factors will impact the overall trajectory of bitcoin in the coming weeks.