"Hmm, maybe the price can reach back to $44K before the end of December?"
After hovering below $42,000, the price of the cryptocurrency king Bitcoin (BTC) finally managed to peak again up to $43,464 when the Federal Open Market Committee (FOMC) meeting early this morning maintained another interest rate hike of 5.25%-5.50%.
There is no denying that the central bank of the United States (US) wants to lower inflation to 2%, but Federal Reserve (Fed) Chairman Jerome Powell remains dovish by maintaining interest rates three times in a row.
Even so, the Fed is ready to further tighten policy if necessary as inflation remains high even though it is decreasing, commented Powell while expressing concern that the US economy may move into recession next year.
Looking ahead, the job market and Gross Domestic Product (GDP) are still holding up in the US, so interest rates could still remain elevated throughout the first six months of 2024.
However, reports indicate the Fed could announce two interest rate cuts in 2024 but Powell also hinted at a third possibility where the decision is independent of the upcoming US election.
Following the development, the yield on US securities mainly between two to seven years has decreased by more than 15 basis points and this means that growth in risky assets such as BTC can occur.
As of this writing, BTC price has surged by 3.59% at $42,821 in the last 24 hours with a market cap of $837 billion but is still down 2.47% over the past week.
