Bitcoin, Bitcoin News, bitcoin price, btc, BTCUSDT, Federal Reserve, inflation, United States Fed

The Bitcoin price remained under pressure on February 1, hours after the United States Federal Reserve (Fed) held interest rates steady on January 31. The dip in the world’s most valuable cryptocurrency is unexpected.

Recent data suggests that analysts expect the central bank to drastically chop interest rates from their multi-year high, which will likely lift Bitcoin. 

In a follow-up analysis following this decision, Alex Krueger, a crypto analyst and economist, believes Bitcoin prices will likely fluctuate in the short term but recover in the long term as the Fed begins lowering interest rates. 

Related Reading: Bullish Golden Cross Forms On Altcoins Chart, Crypto Analyst Expects Big Moves

Taking to X on February 1, the analyst argued that the Fed’s decision to hold rates steady was a “hawkish” move intended to temper market expectations. However, Krueger maintained that the Fed’s overall stance is dovish and that interest rate cuts will likely materialize in May or June.

The analyst also acknowledged that the market is currently “pricing in too many rate cuts for 2024.” Despite the recent plunge, the analyst believes Bitcoin prices will likely continue correcting quickly before bouncing back sharply in the weeks and months ahead.

Krueger contrasted the current Fed policy environment with the situation in 2022. Then, the analyst noted that many in the crypto scene believed rate cuts were overly bearish for Bitcoin. 

Fund rates cut versus equity market performance | Source: Alex Krueger via X In the post on X, the economist attempted to debunk this preview, explaining that rate cuts are only bearish if at the back of a strong recession. Multiple market observers think this is not the case, citing tapering inflation data.

United States inflation data | Source: YCharts Beyond this, the economist noted that the Fed “put” is back on after two years. Analysts interpret this “put” as a commitment by the United States central bank to provide liquidity and support to the financial markets if needed. Between 2020 and 2021, the Fed employed a loose monetary policy, injecting trillions of dollars into the economy while showing its readiness to support banks.

Will BTC Break Above $50,000? As it is, Bitcoin prices remain in an uptrend, looking at technical candlestick arrangement in the daily chart. Though the coin is nowhere close to December 2023 highs and under pressure when writing, buyers have the upper hand. 

Bitcoin price trending sideways on the daily chart | Source: BTCUSDT on Binance, TradingView The immediate support level is around $39,500, recorded in January 2024. If the uptrend is to resume, sparked by macro events, including inflation in the United States and the strength of its labor market, prices must break above $50,000.

Feature image from Canva, chart from TradingView

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Dalmas Ngetich Dalmas is an experienced journalist with over a decade in Forex, general finance, technology, and blockchain developments. He is currently a crypto reporter for Bitcoinist, where he covers DeFi, blockchain, DeFi, and latest industry news. His work and that of his partners have been featured in top news outlets, including Forbes,, CoinTelegraph, and Entrepreneur, among others. He is passionate about technology and politics and is always on the lookout for the latest trends in these fields. He also loves spending time with his family and friends, exploring nature, and traveling to new places. Connect on X: @Dalmas_Ngetich, or message him directly on Telegram here: @Dalmas_Ngetich.

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February 2024


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