Bitcoin wobbles around $39K as Fed confirms up to 1% key rate target next
Bitcoin (BTC) stayed mostly steady at $39,000 on May 4 as the U.S. Federal Reserve conformed to expectations of a 0.5% key interest rate hike.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD exhibiting minimal fluctuation as the Fed confirmed what many assumed had already been "priced into" markets.
In contrast to previous remarks from the Federal Open Markets Committee (FOMC), the May 4 statement did not spark major volatility on crypto markets. The most that traders had to contend with was a brief spurt to just under $39,500.
At the time of writing, Bitcoin traded at similar levels throughout the day.
"With appropriate firming in the stance of monetary policy, the Committee expects inflation to return to its 2% objective and the labor market to remain strong," the FOMC confirmed in an official statement.
The scope for volatility to enter remained, however, as Fed chair Jerome Powell had yet to speak an hour after the statement's release.
In anticipation of Powell's comments, on-chain analytics resource Material Indicators argued that it still did not pay to be long BTC on shorter timeframes.
Giving the #BTC trend the benefit of all doubts here, but note that prior bull reversals had higher bid volume and depth then we have now. If you are long, you either need a looooong term view or a tight stop. Powell speaks in 30 mins. #MayThe4thBeWithYou https://t.co/VzE3V2kA8Q pic.twitter.com/sp1kqDRBrz
Stocks, with which crypto continues to exhibit considerable correlation, were in a buoyant mood amid an absence of surprise moves by the Fed.
The S&P 500 put in a modest bounce to trade up 0.4% at the time of writing, while the Nasdaq 100 gained a more modest 0.2%.
"FED raising rates with 0.50%, but also starting the
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