Bitcoin

Bitcoin Skyrockets to $39K as Powell Signals the End of Fed Rate Hikes!

Bitcoin Hits $39,000 as Fed Chair Boosts Policy Easing Hopes

Bitcoin (BTC) surged to $39,000 on December 1, reaching its highest level since mid-2022. The price rally was fueled by the United States Federal Reserve Chair Jerome Powell’s remarks, which boosted hopes of policy easing.

Powell, during a scheduled appearance at Spelman College in Atlanta, Georgia, stated that the Federal Open Market Committee (FOMC) is committed to reducing inflation and keeping policy restrictive until inflation is on track to the 2% target. He also mentioned that it would be premature to speculate on when policy might ease.

While Powell remained cautious in his tone, his comments on the U.S. economy and progress in reducing inflation seemed to have a positive impact on risk asset sentiment, including Bitcoin.

Financial commentary resource The Kobeissi Letter expressed a more sober perspective on the Fed’s future actions, stating that a long pause in policy is still likely as the Fed aims to avoid a resurgence of inflation.

Bitcoin, on the other hand, took full advantage of the positive sentiment, in contrast to its flat reaction to earlier U.S. macro data prints. The market expectations for the next FOMC meeting in mid-December, based on data from CME Group’s FedWatch Tool, suggest a pause in interest rate hikes.

Looking at Bitcoin markets, popular trader Daan Crypto Trades highlighted the sell-side liquidity involved in the brief surge to $39,000. Keith Alan, co-founder of trading resource Material Indicators, shared an order book snapshot showing significant resistance at $39,000 and $39,200, with strong buyer support at $38,000.

Traders such as BitQuant and Crypto Ed predicted further upside potential for Bitcoin, with targets set at least at $39,200.

It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and assessment of risks before making any investment decisions.

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