Bitcoin (BTC) Price Eyes $70,000 As US Feds Leaves Rate Unchanged

The price of Bitcoin has been surging and it is expected to test $70,000 again as the US Federal Reserve maintains the rate.

HIGHLIGHTS

• The US Federal Reserve has maintained its rate unchanged against market expectations.
• A possible jump in Bitcoin beyond the $70,000 mark
• MarketWatch: Spot Bitcoin ETF Influence Still a Must-watch For Investors.
  

While the rest of the global financial system was expecting an interest reset by the United States Federal Reserve, it held its rates steady, impacting the bitcoin price (BTC).

Bitcoin Price and Fed Stance

This comes after last week’s conclusion of the Federal Open Market Committee (FOMC), where U.S. banking officials decided to keep rates between 5.25% – 5.50%, defying predictions that the Feds would join other G-7 central banks in cutting their rates by a quarter percentage point.

Last week, the Bank of Canada broke ranks with this stalemate and reduced interest rate by 0.25% as inflation no longer seemed scary anymore. Following this move, the European Central Bank (ECB) also cut down its own interest rate with a similar margin. Also last Thursday, the Danish Central Bank had to lower its rate so as to help prop up its local fiat currency.

All these rates cut announcements saw the Bitcoin price display a wavy movement as it oscillated from $66,190 to $70,100. The Federal Reserve kept its rate stance which made Bitcoin price continue with its bullish bounce back earlier today. The coin is trading at $68,785.91 up 3.22% on a 24-hour scale.

Read more:- How To Purchase Bitcoin 

BitCoin Price and Fed Stance

After the conclusion of the Federal Open Market Committee (FOMC), the US banking officials decided to keep rates between 5.25% – 5.50%. This goes against speculation that Feds could follow in the footsteps of other G7 central banks who have reduced their rates by 25 basis points.

However, volatility is evident as despite this rise its trading volume still plunged by -16.3%% after having dropped to $30,874,721,390. Trading at a low of $66,902.46 

within 24 hours and at a high of $69,977.89; it’s expected that the Federal Reserve announcement will boost BTC momentum higher allowing it to retest resistance level at $70k for the second time in history.

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Market Momentum is Just Shaping Up

General market trends significantly influence the price of Bitcoin. Such trends could further direct its growth in mainstream stock markets a few hours from now.

As Bitcoin investors attempt to make sense of the current market positioning, the impact of spot BTC ETF might also play a crucial role moving forward. The trend has, however, changed after a record net-inflow streak of 19 days as Grayscale Investments capital exodus fueled a 2-day outflow. 

While some investors in Bitcoin are trying to comprehend the current state of the economy, the regular investment of BTC on the spot may also be significant in future. However, this trend altered following a 19-day net-inflow streak recorded before a 2-day exodus supported by Grayscale Investments’ capital.

Looking at the short term of bitcoin, one can see how positive an indication is especially on its growth prospects. In the short term, it keeps on having its price targets at around $100,000.