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Breaking News: Bitcoin Reaches $93,000 Amid Renewed Optimism: What To Keep An Eye On This Week
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Breaking News: Bitcoin Reaches $93,000 Amid Renewed Optimism: What To Keep An Eye On This Week

FED Announcement Pushes Bitcoin Price Up, Will BTC Sustain Momentum?

Reynaldo Marquez
Reynaldo Marquez
Last Updated: June 11, 2024 2:18 pm
2 mins read
bitcoin

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Market expectations were met as the U.S. Federal Reserve (FED) announced an interest rate hike of 25 bps pushing Bitcoin into the green. The cryptocurrency was hinting at bullish price action during the week, as today’s Federal Open Market Committee (FOMC) closed in.

Related Reading | Mike Novogratz: Bitcoin Price To Range Between $30k-$50k Throughout The Year

At the time of writing, Bitcoin trades at $41,300 with 5% profits on the last day. BTC’s price was able to break above this price point after a brief period of volatility as FED Chair Jerome Powell began its intervention.

Bitcoin BTC BTCUSD
BTC records slight gains post interest rates increase from the U.S. FED. Source: BTCUSD Tradingview

BTC’s price reacted to the upside and could continue on this trajectory in the short term, as the FED met market expectations.

In the medium term, according to Material Indicators (MI), the FED projects 7 rate hikes that hint at a potential hawkish approach in monetary policy. This could translate into a headwind for BTC’s price and the crypto market.

The U.S. financial institution is determined on reducing inflation which currently stands at a multi-decade high. However, reducing inflation could prove difficult in the current macro-economic environment with the war in Ukraine and supply chain obstacles.

Bitcoin’s current price action moves in tandem with MI’s analysis. Expecting a rally in the short term, the analysts are still reticent to call in a BTC’s price bottom. Sharing the chart below, MI added:

Although Bitcoin has been testing the 200 MA on a 3 Day chart since January and interactions with that range are rare, most traders are looking at the 200 Weekly MA to be a more valid level to bottom test.

Bitcoin BTC BTCUSD
Source: Material Indicators via Twitter

In addition, the analysts believe Bitcoin could resume a more persistent bullish trend if it’s able to reclaim previous lows and break above a new all-time high beyond $69,000.

Bitcoin In The Long Term, A War For Global Dominance

The War in Russia, inflation, supply obstacles, and the recent possibility for Saudi Arabia to start accepting the Yuan for oil transactions add to an already dangerous mix of uncertainty.

8/12 Now add in the news that Saudi Arabia is considering accepting #Yuan instead of Dollars for Chinese oil and you have an accelerator for more economic problems and market uncertainty. https://t.co/5by5PkH8Vf

— Material Indicators (@MI_Algos) March 16, 2022

MI believes there is an ongoing war against the U.S. dollar as a global reserve currency. Driven by Russia and China, this conflict could potentially escalate leading to a “black swan event”, like during 2020 when the crypto market reacted to the COVID-19 pandemic.

Related Reading | Current Stretch Of Bitcoin Fear Surpasses 2021 Selloff

Bitcoin could come out on top in a world where decentralized and un-censorable money becomes a need for the global population. MI said:

The possibility of WW3 makes talking about trading crypto seem petty, but you must plan and prepare for a black swan event. That means conservative risk management and preserving capital for what may be a life changing, generational buying opportunity.

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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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