Bitcoin price headed upward after the US Federal Reserve raised its policy interest rate by a half-percentage point. This comes as a relief for investors and traders as the BTC price has been stuck in a falling wedge pattern for the past months. In the past couple of weeks, the popular cryptocurrency has touched the lows of $36,000.
At the time of writing this article, Bitcoin was consolidating gains of 4.59%, and trading at $39,717. Analysts foresee a test at the $40,000 mark. If it crosses this level easily, then there is no stopping till $42,000. However, the key resistance is still near the $40,350 level. The price might rise to $41,200. BTC has initial support near $39,500.
As the crypto market sees slight gains, traders continue to worry about the potential impact of a global macroeconomic crisis on the digital assets markets. Experts say that if global economies enter a recession, investors seek protection. They will move away from risk-on asset classes.
In regards to the Federal Reserves’ rate hike, there will be ongoing rate increases within the target range that will be appropriate. There is the possibility of another rate hike next month. It could likely be below 0.75%. The rate hikes precede slowing economic growth. This could weigh on asset prices.
The world’s second most popular cryptocurrency, Ethereum gained 5.37%. It is trading at $2,945 but still short of the $3,000 mark. In the altcoins, Avalanche is the biggest gainer. AVAX is up as much as 14%, followed by Cardano (ADA) at 13.08%. Solana (SOL) is up by 9.52%, Polygon 9.07%, Polkadot 8.75%, XRP 6.38%, and Terra LUNA has gained 4.69%.
The meme coins have also recorded gains. Dogecoin is up by 5.36% and Shiba Inu gained 5.47%.