As the crypto market steps into another weekend, Bitcoin has soared to a seven-week high breaching the crucial $21,000 level. The popular cryptocurrency has gained 4.66% in the last 24 hours and is trading at $21,401. Ether is up 5.52% and changing hands at $1,647.
But whatever the gains, Bitcoin continues to be in a tight range. Analysts caution investors that this rangebound movement could result in an explosive move. The direction of the breakout is yet to be determined as technical and on-chain metrics point to different outlooks. However, if the bullish momentum is strong, Bitcoin could get a foothold for its next move to $22,106.
The crypto market’s major uptrend comes nearly two days after the Fed raise interest rates by 0.75 basis points. Jerome Powell had said the Fed is aware of and looking at how policy is impacting markets. He outlined that the latency of interest rate hikes is being acknowledged and considered. The Fed said to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time. The committee will take into account the cumulative tightening of monetary policy to determine the pace of future increases in the target range. It will also look into the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.
It should be noted that after the announcement, Bitcoin and altcoins alike, retraced, and surprisingly markets failed to react. But now, the crypto market is gaining momentum and major gains can be seen across the board.