It would appear that the cryptocurrency market has, at last, made the conscious decision to ignore the performance of traditional markets and instead focus on developing its path.
In its ongoing effort to combat inflation, the Federal Reserve stated earlier this week that it would increase interest rates by 25 basis points.
Although there was a period of consolidation earlier, the cryptocurrency market made a significant recovery on Thursday, March 22, following the release of news from the Fed.
The price of Bitcoin has increased by more than three percent and is trading at $27,922, with a market worth of $541 billion.
In any case, if Bitcoin investors keep up their strong performance, a price of $30,000 is not out of the question.
There is also evidence from several technical charts that point to the possibility of an additional surge to the $34,000–$35,000 range.
#Bitcoin | Nothing has changed!
If this bullish megaphone is the governing pattern behind $BTC price action, we could target $34,000. https://t.co/gcF1LpGxQX pic.twitter.com/ulpF9DxFH3
— Ali (@ali_charts) March 23, 2023
The Effect of the Latest Fed Announcement on Cryptocurrency
The recent performance of Bitcoin has led some industry insiders to become quite positive about the cryptocurrency, and some anticipate that it will reach a new all-time high and touch $100,000 by the end of the year.
Ethereum (ETH) is currently trading at $1,814 and has a market cap of $222 billion; its price has increased by 3.49% over the past 24 hours. Other cryptocurrencies have also participated in the price boom.
The price of alternative cryptocurrencies like Cardano (ADA), XRP, Dogecoin (DOGE), Solana (SOL), and Polygon (MATIC) has increased by ranging from 1-2 percent.
After a robust bounce on Wall Street on Thursday, the cryptocurrency market has recently been on an upward trend.
During the last trading session, all three of the most important stock indices in the United States finished in the positive.
The Chairman of the Federal Reserve, Jerome Powell, has made hints that the US Central Bank may halt future interest rate hikes depending on how the macroeconomic situation in the country develops.
A Combination of Uncertainty and Opportunity
The job market in the United States continues to show no signs of slowing down, while inflation shows no signs of letting up. Powell has stated that he does not see any rate cuts occurring this year in 2023. This comes as inflation continues to remain high at 6%. A crisis-like situation arose in the banking sector earlier this month due to the Federal Reserve’s decision to raise interest rates.
Yet, the Fed and the FOMC were able to make an effective intervention in time to stop the epidemic from spreading any further.
Traders are considering the Federal Reserve’s most recent policy meeting, according to Sylvia Jablonski, CEO & chief investment officer at Defiance ETFs. She made this statement to CNBC. Jablonski added:
“The Federal Reserve did what the market wanted and hinted that further rate hikes may not be necessary. They also recognized the deflationary impact that the recent financial collapses would make towards a drop in inflation.
If the Federal Reserve is considering pausing its rate hikes, this should be good news for risky and growth investments like technology companies and cryptocurrency.
In a nutshell, monetary policy and the influence of interest rates on the economy as a function of whether or not we will experience a recession continue to be fraught with unpredictability.
It will be fascinating to observe whether or not Bitcoin and other cryptocurrencies are able to keep their recent momentum going for the remainder of the year.