Bitcoin’s crossover to the $17,000 threshold is positive for the broader crypto market. The popular cryptocurrency is likely to see a long-term correction. Analysts say it’s something of a Christmas rally.
BTC price could hit the high of $19,000 and roll in a 15% profit as a gift to the end of 2022, but there is one challenge remaining. The top digital asset is recouping the losses it incurred at the beginning of November. Bitcoin is being driven by the sentiment with the speech from Federal Reserve chairman Jerome Powell. He said the labor market shows only tentative signs of rebalancing and wage growth remains well above levels that were consistent with 2% inflation. Powell added that there is a long way to go in restoring price stability.
The chair, on Wednesday, indicated there would be a slowing of the pace of rate hikes from 75 basis points to 50 basis points. Powell said the timing of that moderation is far less significant than the questions of how much further they will need to raise rates to control inflation, and the time frame it will be necessary to hold policy at a restrictive level.
At the time of writing this article, Bitcoin was trading at $17,024 and Ether was changing hands at $1,287. Bitcoin’s monthly returns in November of 2018, 2019, and 2021, according to Coinglass data, were negative and it was followed by a further fall in December. It’s to be seen whether this trend will be repeated as 2022 draws to an end. The bulls need to do more work. If they are able to push the price above $17,622, BTC could climb further up.