30s Summary

On December 19, the price of Bitcoin hovered around $102,000, as the cryptocurrency market cautiously recovered following a shock. Bitcoin’s price fell to $98,695 the previous day, following a hint by Federal Reserve Chairman, Jerome Powell, that they may not lower interest rates in the future. Despite the drop, some experts believe Bitcoin is gradually making a recovery. However, others warn of a larger Bitcoin setback in the future. In January, there is an 8.6% chance of another rate cut, according to the CME Group’s FedWatch Tool.

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As the Wall Street market opened on Dec. 19, Bitcoin managed to hover around $102,000, hinting at a cautious recovery in the crypto world after a recent shock.

The Federal Reserve’s latest move seemed to abruptly halt the Bitcoin bull market. Bitcoin price went up by literally 2% when compared to the everyday open.

The day before saw Bitcoin being part of a crypto sell-off, influenced by the US Federal Reserve. This caused the value to drop to a low of $98,695.

The cause of this drop? The Federal Reserve Chairman, Jerome Powell, hinted at hesitance over future interest rate cuts considering a bounce back in various inflation measures.

In his statement addressing the decision to reduce the benchmark interest rate by 0.25%, he commented, “We’ve managed to lower our policy rate by a whole percentage point from its peak and currently, our policy is considerably less restricted. This allows more caution in further adjustments to our policy rate.”

The trading session ended with a 3% drop in both the S&P 500 and Nasdaq 100 due to the impact.

Expectations from CME Group’s FedWatch Tool give a mere 8.6% chance for another rate cut at the Federal Reserve’s next assembly in January.

Looking at short-term Bitcoin price changes, crypto trader Skew still believes Bitcoin’s recovery is showing promise. He stated that the market demand still prevails even with the sweep of lasts week’s low. He’d like to see the price sustain strength above the value area and keep up the passive demand for a recovery.

Other analysts suggest thinking long-term considering the recent fluctuating tendencies. In spite of everything, Bitcoin’s still up by 6% this December.

Daan Crypto Trades stated, Bitcoin’s price trends might not look good, but they’re still slowly moving upwards. He also pointed out the purifying effect of mass liquidations when the market took a downturn.

Not all predictions were positive. Expectations for stronger Bitcoin setbacks arose from people concerned about large-scale implications. Crypto trader Mark Cullen warned his followers to brace for a larger Bitcoin pullback perhaps sometime in January.

He stated, “While it’s good news that BTC is still above $100k, we might see one more spike before a major correction lands.”

But remember folks, every investment comes with its risks. It’s always recommended to do your research before you decide to dive in.