{"id":1455,"date":"2022-01-27T19:17:42","date_gmt":"2022-01-27T19:17:42","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=1455"},"modified":"2022-01-27T19:17:42","modified_gmt":"2022-01-27T19:17:42","slug":"bitcoin-gives-back-gains-after-fed-comments-add-downside-risks-to-crypto-markets","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=1455","title":{"rendered":"Bitcoin \u2018gives back gains\u2019 after Fed comments \u2018add downside risks\u2019 to crypto markets"},"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) price continues to flash mixed signals, raising uncertainty among investors and negatively impacting asset prices across the market.<\/p>\n<p>Data from Cointelegraph Markets Pro and TradingView shows BTC price pinned below $36,000 and even though crypto and equities markets underwent a brief relief rally on Wednesday, comments from the recent FOMC meeting appear to be settling in as investors internalize the fact that interest rate hikes are on the way.<\/p>\n<p><em>BTC\/USDT 1-day chart. Source: TradingView<\/em><\/p>\n<p>Here\u2019s a look at what analysts and traders are saying about Bitcoin&#8217;s most recent price action and the macroeconomic factors impacting the wider crypto market.<\/p>\n<h2>A year of &#8220;range bound&#8221; trading<\/h2>\n<p>The long-term range-bound trading that BTC has been in since early 2021 was addressed by Mike McGlone, Senior Commodity Strategist for Bloomberg Intelligence, who posted the following chart and asked, \u201cWhat ends Bitcoin, Ethereum range trade?<\/p>\n<p><em>BTC\/USD 1-week chart. Source: Twitter<\/em><\/p>\n<p>According to McGlone, the key to escaping the current range are the \u201cbullish fundamentals\u201d that back the underlying strength of Bitcoin. <\/p>\n<p>McGlone said, <\/p>\n<p>\u201cBy the rules of economics, a market with rising demand and declining supply will go up over time, suggesting that Bitcoin may be forming a bottom again around $30,000 as $60,000 resistance ages.\u201d<\/p>\n<h2>The Fed continues to add downside risks<\/h2>\n<p>A deeper analysis on the impact of Wednesday\u2019s Federal Reserve meeting was provided by Bilal Hafeez, CEO and head of research at Macro Hive, who noted that the tone of the meeting \u201cturned out to be more hawkish than expected.\u201d<\/p>\n<p>Hafeez pointed to the decision by the Fed to raise the inflation forecast as a sign that the central bank has realized that \u201cthey need to be more hawkish than before,\u201d and he highlighted Powell\u2019s comments that \u201cthis cycle would be different to the last cycle, which suggests faster hikes than before.\u201d<\/p>\n<p>With that being said, Hafeez indicated that the Fed \u201chas not decided on a path yet,\u201d and noted that Powell \u201cdidn\u2019t give much additional information on quantitative tightening except that it would operate in the background.\u201d<\/p>\n<p>Hafeez said, <\/p>\n<p>\u201cOverall, the Fed is comfortable with equity and risk markets selling off as it tightens financial conditions and so could reduce inflation. Bond yields have risen after the meetings, equity and crypto markets have given back gains. The Fed continues to add downside risks to risky markets.\u201d<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Derivatives data suggests that Bitcoin\u2019s $39K bounce was a mere blip<\/em><\/strong><\/p>\n<h2>Short-term weakness, long-term strength<\/h2>\n<p>The near-term outlook for BTC was briefly touched upon by derivatives traders and pseudonymous Twitter user \u2018Crypto McKenna\u2019, who posted the following chart and stated that \u201cBTC price action is about to get very boring.\u201d<\/p>\n<p><em>BTC\/USD 6-hour chart. Source: Twitter<\/em><\/p>\n<p>McKenna said, <\/p>\n<p>\u201cNo trade season for the next 10-20 days in my opinion.\u201d<\/p>\n<p>Despite this projection for near-term weakness and sideways price action, the long-term outlook continues to brighten for multiple reasons, as noted in the following Tweet from crypto analyst Will Clemente. <\/p>\n<p lang=\"en\" dir=\"ltr\">Bitcoin price weakness because of risk-off behavior while fundamentals strengthening: Intel creating mining chips, Russia looking to get involved in mining, Goldman Sachs bullish, Google partnership w\/ Coinbase, El Salvador Bond.<\/p>\n<p>Hard to think asymmetry is to the downside.<\/p>\n<p>\u2014 Will Clemente (@WClementeIII) January 27, 2022<\/p>\n<p>The overall cryptocurrency market cap now stands at $1.663 trillion and Bitcoin\u2019s dominance rate is 41.5%.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/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-gives-back-gains-after-fed-comments-add-downside-risks-to-crypto-markets\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin (BTC) price continues to flash mixed signals, raising uncertainty among investors and negatively impacting asset prices across the market. Data from Cointelegraph Markets Pro and TradingView shows BTC price pinned below $36,000 and even though crypto and equities markets underwent a brief relief rally on Wednesday, comments from the recent FOMC meeting appear to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1456,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-1455","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\/1455","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=1455"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/1455\/revisions"}],"predecessor-version":[{"id":1457,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/1455\/revisions\/1457"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/1456"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1455"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1455"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1455"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}