BTC Looks Resilient on Critical Day

Bitcoin has made a solid start to the day when the Fed will announce its interest rate decision. While Bitcoin was drawing an optimistic picture yesterday, it rose again to the $ 23,000 border with its mildly buyer appearance and remains stable in the $ 23,000 band. Bitcoin saw a 40% increase in value in the first month of the year, recording the best January performance of the last 10 years. The crypto money, which started the year at $ 16,540, closed the month at $ 23,125. In general, there was a fund inflow of approximately 280 billion dollars to the crypto money markets, which are in the recovery phase under the leadership of Bitcoin.

While January is ending in a positive atmosphere for cryptocurrencies, it is expected that important macroeconomic data to be announced in the first days of February will be decisive about the direction of the market. First, the Fed interest rate decision will be followed today, and then Powell’s speech may give important signals about risky markets. Then tomorrow will come the interest rate decisions of the European and UK central banks. On the last business day of the week, US Non-Farm Employment figures will be followed closely. Accordingly, in the second half of the week, volatility in the crypto money markets is expected to increase. At the center of the optimistic mood in January was the opinion that the Fed would slow down the rate of increase in interest rates, and December data, which indicated that the rate of inflation was cut. While the interest rate to be announced today is expected to increase by 25 points, there are some expectations that the rate hike will come to an end after two more 25 basis points hikes for the upcoming periods.

In this context, the words of Fed Chairman Jerome Powell began to gain even more importance. According to the previous statement, Powell has hawkish views that tightening policies will continue to rein in inflation. Therefore, the continuation of the hawkish approach in tonight’s speech may cause volatile downward movements in the cryptocurrency markets. In this process, there are some pessimistic comments that Bitcoin has not yet been able to establish a solid ground above $ 23,000, and that a correction may begin in a possible wave of sales this week. However, those who are optimistic about cryptocurrencies believe that the worries from the FOMC have subsided and the markets are past their worst period since FTX.