Bitcoin Establishing Correction Bottom After Recent Drop
Bitcoin (BTC) price is gradually establishing a correction bottom after dropping about 15 percent in the past five days. The flagship coin has gained around 2 percent in the past 24 hours to trade around $63k on Wednesday during the mid-London session. The heightened volatility that led to more than $550 million in crypto liquidation has significantly slowed down as more traders come to terms with today’s high-impact news.
Crypto Trader Sentiment and Institutional Investments
- Institutional investors like MicroStrategy and BlackRock are continuing their Bitcoin acquisition programs in anticipation of a potential crypto parabolic rally after the upcoming halving event.
Crypto Macroeconomic Outlook
On Tuesday, the Bank of Japan ended the deflationary period that lasted from 2007 by conducting the first rate hike to 0.1 percent, causing the Japanese yen to slip above 150 against the U.S. dollar ahead of today’s FOMC statement. The Federal Reserve is expected to maintain its benchmark interest rate at 5.50 percent as they monitor inflation data. Recent CPI data indicates that U.S. inflation has not entirely met the desired 2 percent target, delaying expected interest rate cuts to at least June.
What’s Next for Bitcoin and Altcoins
- Cryptocurrency traders who sought refuge in stablecoins amidst forced liquidations are expected to re-enter the market following today’s FOMC statements.
- Bitcoin’s forthcoming halving, approximately 31 days away, is likely to sustain the prior bullish outlook in the coming days, fueled by increased demand from institutional investors.
- Bitcoin may encounter significant resistance around $74k and consolidate before resuming its rally, potentially allowing the altcoin sector to experience growth.
Hot Take: Conclusion and Future Prospects
As Bitcoin establishes a correction bottom and sentiments remain positive, institutional investments continue to drive the market forward towards a potential parabolic rally after the upcoming halving event. With the macroeconomic landscape shaping up amidst interest rate decisions, the crypto market is poised for further volatility and potential growth opportunities. Stay tuned for more updates as the market evolves and navigate wisely through the changing tides of the crypto space!
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