Bitcoin rebounded on Tuesday and was trading above $43k on January 16, but from the past few days, it has been trading at one constant price below investors’ expectations for the past few days. Traders were temporarily happy as Bitcoin traded above $43k in their portfolios.
According to the data by TradingView Bitcoin was struggling and witnessed ups and downs yesterday and was trading near $42,70.
After the Bitcoin ETF was approved, many of the short-term holders got profit due to their temporary holdings and this has affected its price. There is also one more significant impact which is long-term holders who remain constant in their positions and don’t compromise with Bitcoin’s price volatility.
Impact of Fed Meeting
The Federal Reserve is going to hold a meeting in 15 days, probably at the end of January. The meeting will be all about deciding on the direction of the central bank’s monetary policy. CME FedWatch tool has anticipated that there is a 97.4% chance that the Fed’s Funds rate will remain under the current target range of 5.25% to 5.50%.
“This potential reduction is seen as a move to support the economy, especially if inflation continues to align with the Fed’s stability target. However, the timing and scale of these interest rate cuts are critically important. Early or excessive cuts could reignite inflation, while delays or minimal cuts could hinder economic growth.”
One of the known Betfinix analysts predicted that the possible interest rate pause in January could lead to a boost in bitcoin price.