{"id":1395,"date":"2022-01-25T12:51:36","date_gmt":"2022-01-25T12:51:36","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=1395"},"modified":"2022-01-25T12:51:37","modified_gmt":"2022-01-25T12:51:37","slug":"bitcoin-holds-onto-10-gains-ahead-of-crucial-fed-rate-hike-comments","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=1395","title":{"rendered":"Bitcoin holds onto 10% gains ahead of crucial Fed rate hike comments"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>Bitcoin (BTC) held onto fresh upside on Tuesday after a resurgent stock market took the largest cryptocurrency above $37,500.<\/p>\n<p><em>BTC\/USD 1-hour candle chart (Bitstamp). Source: TradingView.<\/em><\/p>\n<h2>Fed may spark fresh volatility<\/h2>\n<p>Data from Cointelegraph Markets Pro and TradingView\u00a0showed BTC\/USD trading above $36,000 on Tuesday, with maximum 24-hour gains totaling 14% versus Monday\u2019s floor.\u00a0<\/p>\n<p>Bitcoin\u2019s correlation to equities remained in focus ahead of a fresh Wall Street open and key information regarding interest rates from the United States Federal Reserve.<\/p>\n<p>The Fed\u2019s\u00a0Federal Open Market Committee (FOMC) is set to meet Wednesday, and any news regarding interest rates could have instant repercussions for both traditional and crypto markets.<\/p>\n<p>\u201cTomorrow\u2019s FED FOMC meeting could mean that we will see lots of volatility this week,\u201d Cointelegraph contributor Micha\u00ebl van de Poppe forecasts.<\/p>\n<p>Rate hikes are planned to be the follow-on from the Fed\u2019s asset purchase tapering, with Bitcoin sentiment taking a hit in advance as the end of \u201ceasy\u201d liquidity nears.<\/p>\n<p>Asset purchases should conclude by March, however, and the Fed has said that the rate hikes should not come before then.<\/p>\n<p>\u201cPrice reversion in cryptos is likely to spread in 2022, after the assets were a poster child of speculative inflationary excess in 2021, but Bitcoin stands to come out ahead,\u201d Mike McGlone, chief commodity strategist at Bloomberg Intelligence, summarized in a hopeful outlook for BTC.<\/p>\n<p>\u201cCorrelations are heading toward 1-to-1.\u201d<em>BTC\/USD vs. S&amp;P 500 correlation chart. Source: Mike McGlone\/Twitter<\/em><\/p>\n<p>Earlier this month, McGlone said that Bitcoin could rebound stronger than stocks once they see a long-overdue correction of up to 20%. Now, he added that altcoins would likely fail to put in as solid a comeback.<\/p>\n<h2>Major altcoins wipe out earlier fall<\/h2>\n<p>On the topic of altcoins, these nonetheless put in a solid performance on the day, with Ether (ETH) matching Bitcoin\u2019s advance.<\/p>\n<p><strong><em>Related:\u00a0\u2018Stop panic selling\u2019 \u2014 Bitcoin whales bag spare BTC as exchange balances fall<\/em><\/strong><\/p>\n<p>ETH\/USD was up 7.3% at the time of writing, trading at $2,420, having previously hit lows of $2,160 \u2014 its worst since mid-July.<\/p>\n<p><em>ETH\/USD 1-hour candle chart (Bitstamp). Source: TradingView.<\/em><\/p>\n<p>Something of a V-shape recovery was also noticeable on other large-cap altcoins, including Binance Coin (BNB) and Solana (SOL).<\/p>\n<p>\u201cThe good part is that we\u2019re getting closer and closer to the next impulse rally on altcoins as most of them have been retracing fully,\u201d van de Poppe argued before the rally.<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/bitcoin-holds-onto-10-gains-ahead-of-crucial-fed-rate-hike-comments\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin (BTC) held onto fresh upside on Tuesday after a resurgent stock market took the largest cryptocurrency above $37,500. BTC\/USD 1-hour candle chart (Bitstamp). Source: TradingView. Fed may spark fresh volatility Data from Cointelegraph Markets Pro and TradingView\u00a0showed BTC\/USD trading above $36,000 on Tuesday, with maximum 24-hour gains totaling 14% versus Monday\u2019s floor.\u00a0 Bitcoin\u2019s correlation [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1396,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-1395","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/1395","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1395"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/1395\/revisions"}],"predecessor-version":[{"id":1397,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/1395\/revisions\/1397"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/1396"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1395"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1395"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1395"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}