At present, the value of Bitcoin has stabilized at around $23,000. The interest rate and Bitcoin have a direct correlation, as evidenced by the fluctuations observed over the past year. If data suggests a 25-basis point softening, a short-term price increase can be expected.
The Federal Open Market Committee’s meeting concludes on February 1st and a 25-basis point rate hike is widely expected, pushing the federal funds rate from 4.5% to 4.75%.
When the Federal Reserve started hiking interest rates, Bitcoin’s value decreased, possibly due to nervous market participants selling their holdings.
Economic Concerns & Recession Risks
Bitcoin broke $23,000 as the previous month’s numbers leveled out, jumping 40% in 4 weeks. If interest rates continue to soften, another significant increase may be seen in February, potentially breaching the $30,000 support level. Currently, BTC is valued at $23,727 with a 7% increase in the past 24 hours.
The CME FedWatch Tool predicts a 99.9% chance of a 25-basis point interest rate hike by the Federal Reserve. Once a decision is made, Fed Chair Jerome Powell will give a speech outlining the Fed’s outlook. Although a 25 bps hike is widely expected, the possibility of a 50 bps hike still exists.
Elon Musk and Treasury Secretary Janet Yellen have voiced concerns about the risk of a deep recession in the US economy. Yellen worries that high-interest rates could trigger a recession, despite declining inflation and positive employment numbers.
- SEO Powered Content & PR Distribution. Get Amplified Today.
- Platoblockchain. Web3 Metaverse Intelligence. Knowledge Amplified. Access Here.
- Source: https://coinpedia.org/bitcoin/bitcoin-btc-price-can-hit-30k-in-february-if-this-happens/
- 000
- 7
- a
- About
- Although
- and
- Another
- around
- Bitcoin
- Bitcoin (BTC) Price
- Broke
- BTC
- Chair
- Chance
- CME
- Coinpedia
- Concerns
- continue
- Correlation
- could
- Currently
- data
- decision
- Declining
- deep
- Despite
- direct
- economy
- employment
- exists
- expected
- Fed
- Fed Chair
- Fed Chair Jerome Powell
- Federal
- Federal Funds Rate
- federal reserve
- fluctuations
- from
- funds
- Give
- happens
- Hike
- Hit
- Holdings
- HOURS
- in
- Increase
- inflation
- interest
- INTEREST RATE
- interest rate hike
- Interest Rates
- jerome powell
- Level
- made
- Market
- meeting
- Musk
- numbers
- open
- Outlook
- participants
- past
- plato
- Plato Data Intelligence
- PlatoData
- Point
- positive
- possibility
- potentially
- Powell
- Predicts
- present
- previous
- price
- Price Increase
- Pushing
- Rate
- Rate Hike
- Rates
- recession
- Reserve
- Risk
- Selling
- short-term
- significant
- speech
- started
- Still
- Suggests
- support
- support level
- The
- their
- to
- tool
- treasury
- trigger
- us
- US economy
- value
- value of bitcoin
- valued
- Weeks
- widely
- will
- year
- zephyrnet