Bitcoin (BTC) News: In what could be an encouraging deviation from the macroeconomic environment, the crypto market could perhaps go through a rally in February. At least it is the larger market sentiment that a Fed pivot to slower interest rate hike could prove to be positive for Bitcoin (BTC) price. However, if the central bank decides to continue with a 50 bps interest rate rise, it could be a path downhill for the cryptocurrencies. On the other side, a weakening US Dollar bodes well for a bullish picture for BTC price, considering the inverse relation both assets follow.
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The U.S. Dollar Index (DXY), which indicates the strength of the Dollar value against various currencies, is on a downward curve in the last one month. Compared to the index value around Christmas, DXY lost more than 2%. Meanwhile, the BTC price is currently hovering around the $23,000 mark. As of writing, the top cryptocurrency is trading at $22,901, up around 0.1% in the last 24 hours, according to CoinGape price tracker.
Will Fed Make A Pivot In February?
The Federal Open Market Committee (FOMC) meeting is scheduled between January 31 and February 1. The traders would be hoping for a 0.25% rate rise in February and a similar outcome from further meetings. If this goes on to be true, BTC price could see significant rise with the news, setting a base for a potential rally thereafter. Overall, the Bitcoin price could well be dependent on the looming danger of a U.S. recession against the Fed’s monetary policy outlook.
Both #gold and #Bitcoin are up in 2023, but they’re rising for opposite reasons. Gold is rising as a hedge against #inflation and a weaker #dollar, while Bitcoin is rising with other high-risk assets as speculators bet that a #Fed pivot will cause a rally in 2022s biggest losers.
— Peter Schiff (@PeterSchiff) January 23, 2023
In addition to this, several Fed officials had in recent past hinted at the possibility of slowing of rate hike. Also. Peter Schiff, a popular personality in the U.S. finance industry, shed light on speculation of crypto price rise in case of the Fed pivot.
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