Bitcoin's value surged after Federal Reserve Chair Jerome Powell addressed Spelman College, Atlanta, Georgia. Powell stressed the Fed's commitment in reducing inflation to just 2%. Powell's cautious tone was accompanied by a positive outlook for the U.S. and its progress in reducing inflation, which boosted risk assets sentiment. Some financial commentators, like The Kobeissi Letter remained cautious regarding the Fed's actions in the future. Bitcoin benefited from the positive sentiment by breaking through resistance levels. Market analysts expect further gains, with price targets exceeding $39,000 by the time of the next Federal Open Market Committee meeting in mid-December.
James Seyffart, an ETF analyst, revealed that the recent Bitcoin surge was also tied to a window of official approval for a Bitcoin ETF. The window is set between January 5 and 10. The announcement of a spot Bitcoin ETF has sparked excitement among the cryptocurrency community. Potential approval orders are expected to be issued on Jan. 8, 9 or 10. Seyffart speculated about Gary Gensler, the chair of the committee. He suggested that there was a small chance for a delay. This is also attributed to increased institutional demand. Influential investors and changing economic conditions are fueling the optimism. The combination of this with the expected rate cut creates favorable conditions to see another bull run on the cryptocurrency market.
Bitcoin Bulls Surge As Fed Chair Jerome Powell Maintains Caution
The cryptocurrency markets reacted to Jerome Powell's appearance at Spelman College. He spoke with a wide range of people about the U.S. economic situation and inflation. Bitcoin, which was already strong, has managed to overcome resistance and rise higher than expected.
Powell's Cautious Tones
Powell's speech was cautious, highlighting the Federal Open Market Committee (FOMC) commitment of reducing inflation at the target rate to 2%. Powell said, "It is premature to conclude that we are at a restrictive enough stance or speculate when policy may ease." His remarks, while measured, appeared to boost the risk asset sentiment.
Market Reactions vary
The Kobeissi Letter is a financial commentary resource that offers a sober outlook on the Fed's actions in the future. It noted that this narrative has remained constant since last year. The Kobeissi Letter, which is a financial commentary resource, offered a sober perspective on the Fed's future actions, noting that their narrative had remained consistent since last year.
Bitcoin capitalizes on sentiment
Bitcoin, however, took advantage of the opportunity that Powell's remarks presented, as opposed to its previous muted response to the U.S. macroeconomic release data released earlier in the week. Bitcoin's reaction was quick, but it also showed resilience and bullish momentum.
Meeting of the FOMC to be held soon
The Federal Reserve is expected to announce changes in interest rates at the next FOMC meeting, scheduled for mid-December. CME Group's FedWatch Tool data shows that market expectations as of December 1st were strongly in favor of a pause on interest rate increases.
BTC price targets soar
Daan Crypto Trades, a popular trader in the Bitcoin market, revealed the volume of liquidity experienced by the sell-side during Bitcoin's short ascent to 39,000 dollars. Keith Alan, cofounder of trading resource Material Indicators and a snapshot BTC/USDT liquidity after Powell's address, was able to share a snapshot. Notably, $39,000, $39,200, and $38,000 were significant resistance levels. There was also substantial support from buyers at these levels.
Market analysts and traders remain optimistic about Bitcoin's future. BitQuant predicted a strong signal with a close of the day above $38,000. Crypto Ed, founder and CEO of trading group CryptoTA, forecast Bitcoin's potential upside, which could reach at least $39200.
Bitcoin's performance is closely tied to global economic developments, which makes it a focal part of the changing financial landscape. Market participants are eagerly awaiting the December FOMC Meeting, where new insights into the Federal Reserve’s policy stance could shape Bitcoin’s trajectory in weeks to come.
BTC's soaring rally coincides with the anticipation of spot Bitcoin ETF approval
BTC is soaring to new heights as the world of cryptocurrency buzzes with excitement. This coincides with the eagerly awaited official approval window for an ETF that tracks Bitcoin. This long-awaited event could be a milestone for the crypto industry and has caught the attention of investors and analysts.
The Approval Window for Bitcoin ETFs has been Revealed
James Seyffart, an ETF analyst who has been a part of the crypto community for many years, recently shared some important information on the X social network. Seyffart claims that the U.S. Securities and Exchange Commission's (SEC) official approval window has been set from Jan. 5 to Jan. 10. Seyffart said that the U.S. Securities and Exchange Commission (SEC) has set a window of approval for a spot Bitcoin ETF between Jan. 5 and Jan. 10.
Seyffart said that while the crypto community is eagerly awaiting this historic decision, there's a 10% chance or less of a possible delay, if Gary Gensler takes an unconventional approach.
Seyffart proposed an alternative scenario where the SEC might not be fully prepared for such a significant step. In this case, the SEC could have been in talks with companies like ARK Invest or 21Shares about withdrawing their filing. They may have offered future assurances, or explored an alternative course of action.
Bitcoin's Surge: Factors behind its remarkable growth
Bitcoin's meteoric rise since 2023 is a result of several factors. These have all contributed to the renewed vigor in Bitcoin and its bullish sentiment. The optimistic outlook of influential investors, as well as the changing economic conditions are key factors.
This surge in price is largely due to the expectation of increased institutional demand. Experts in the industry have believed for a long time that increased Bitcoin adoption by financial titans such as BlackRock and Fidelity would propel the cryptocurrency price to greater heights. The growing institutional interest in Bitcoin, combined with the expectation of rate cuts, creates a perfect storm for a new bullish run.
Investors and crypto enthusiasts are watching these developments closely, as an approval of a Bitcoin ETF could lead to a flood new capital into the cryptocurrency market. As regulators and participants in the market await the SEC decision, the coming days of January could potentially change the future of Bitcoin.
Price Overview
Chart for BTC/USDT daily (Source: TradingView).
BTC was trading over the $38K key resistance level as of press time, following a slight gain of 0.21% throughout the last 24 hours. This slight gain was part and parcel of BTC’s positive trend it has been on for the past four weeks.
If the bullish momentum continues, the market leader may soon reach the resistance level of $40,000. If traders start to take profits, the cryptocurrency could retrace towards the immediate support at $38,000. Continued selling pressure may bring the value of the cryptocurrency down to the next support level, which is $36,880.
