Is Bitcoin bullish or nah? Here is what is really going on with BTC price
Since March 2022, traders and so-called analysts have been forecasting a policy change or pivot from the United States Federal Reserve.
Apparently, such a move would prove that the Fed’s only available option is to print into oblivion, further diminishing the value of the dollar and enshrining Bitcoin (BTC) as the world’s future reserve asset and ultimate store of value.
Apparently.
Well, on Nov. 2, the Fed raised interest rates by the expected 0.75%, and equities and crypto rallied like they usually do.
But this time, there was a twist. Prior to the Federal Open Market Committee (FOMC) meeting, there were a few unconfirmed leaks stating that the Fed and White House were considering a “policy pivot.”
According to comments issued by the FOMC and during Jerome Powell’s presser, Powell emphasized that the Fed is aware of and monitoring how policy is impacting markets and that the latency of interest rate hikes is being acknowledged and considered.
The Fed stated:
Sounds a bit pivot-y, no? The crypto market seemed to think not, and shortly after Powell gave his live comments, Bitcoin, altcoins and equities retracted their brief single-digit gains.
The shock here is not that Bitcoin’s price pulled back prior to the FOMC meeting, rallied after the estimated hike was announced and then retracted before the stock market closed. This is to be expected, and I wouldn’t be surprised if BTC returns to the lower end of $21,000 since $20,000 appears to be solidified as support.
What is surprising is there was a dash of pivot language, and markets didn’t react accordingly. Let that be a lesson on buying into narratives too deeply.
In my opinion, trading the FOMC, consumer price index (CPI) and rate hikes is not the way to go. Sure, if
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