Bitcoin shoots up to the USD24,000 level, reacting to Fed hike

Bitcoin shoots up to the USD24,000 level, reacting to Fed hike

Bitcoin prices spiked up to USD24,000 levels even as traders shorted on meme tokens as crypto investors positively reacted to the results of The Federal Open Market Committee (FOMC) meeting that raised the Fed funds target rate by 25 basis points (bps).

Above: On WOO X, BTC edged closer to USD 24,000 levels during the FOMC meeting [Taipei time] and finally traded up to $24,257 hours after the meeting. As of this article, BTC traded below the USD 24,000 mark.

Market analysts polled by WOO Network concur that the market reacted positively to the news but differ on Fed Chairman Jerome Powell's approach to easing inflation rates.

“I think investors will have become desensitized to the Fed after this [recent FOMC meeting]. With the back-and-forth swing between hawkish and dovish tones since last year, apathy among investors will start to set in,” Jack Tan, co-founder of WOO Network said.

“Powell seems to be losing his credibility. I think this FOMC meeting was his last chance to push back against loosening financial conditions and rising prices across all risk assets. Instead, I perceived his commentary as relatively dovish [supportive of economic growth and financial markets, rather than trying to tame inflation] compared to my expectations, which pushed all markets higher.  Now he’s between a rock and a hard place, as markets seem to be increasing their doubt in his credibility,” Mitchell Williams from WOO Network Ecosystem pointed out.

“Powell was as hawkish as he could be in his statement today, and I don’t think it could be more hawkish than that. Reacting to this, the market didn’t want to go down and it was picking up the pace during the Q&A. To me, it looks like the market was strong and was only looking for any excuse to go up,” Marek Chajecki, founder of KTG Global on the other hand said.

The next FOMC meeting is scheduled for March 21-22. Before that, the market is expected to react to CPI data on Feb 10th.

Above: Another analyst described how the Fed chair handled the Feb 1st FOMC meeting with a meme comparing Powell to a previous Fed chair who was known for combating inflation rates to the lowest levels in US history.

Related story: Will the central bank finally ease on rate hikes?


The content above is neither a recommendation for investment and trading strategies nor does it constitute an offer, solicitation, or recommendation of any product or service. The content is for informational sharing purposes only. Anyone who makes or changes the investment decision based on the content shall undertake the result or loss by himself/herself.

The content of this document has been translated into different languages and shared throughout different platforms. In case of any discrepancy or inconsistency between different posts caused by mistranslations, the English version on our official website shall prevail.

Read Next
Strong uptrend in play #TradingOutlook - Powered by KTG

Strong uptrend in play #TradingOutlook - Powered by KTG

A strong uptrend is evident in the crypto markets right now. How far will we go? BTC continues to be very strong, benefiting from liquidity injected to the banking system and working as a safe haven for those diversifying out of banks and fiat money. On top of that, it finally broke out of the 9-month range. BTC entered last week strong, although a bit tired on Monday after a sharp up-move late on Sunday caused by the Fed, US Treasury and FDIC’s intervention to save SVB and prevent spillover e
Mar 21, 2023
How to reduce your tax bill with tax loss harvesting

How to reduce your tax bill with tax loss harvesting

Lower your tax bill by making sure that you count all your losses, especially last year when the market suffered a downturn. We’ve teamed up with crypto tax calculator Koinly to present a guide to crypto tax loss harvesting. Before we jump into tax loss harvesting tips, let’s go over the crypto tax rules real quick. In many jurisdictions, crypto is generally viewed as a capital asset - like property or stocks. That means when you dispose of a capital asset, you’ll realize a capital gain or los
Mar 17, 2023
Editorial: Crypto players face regulatory headaches after failed Signature, SVB, and Silvergate but growth will persist

Editorial: Crypto players face regulatory headaches after failed Signature, SVB, and Silvergate but growth will persist

The failures at Signature, Silicon Valley Bank (SVB), and Silvergate will chill the expansion of crypto-related businesses in the EU, especially as new rules for distributed ledger technology (DLT) and virtual assets are slated for parliamentary approval next month.
Mar 16, 2023

We use cookies to improve your experience. To find out more, please read our Privacy Policy. By clicking "Accept", you consent to our cookie and Privacy Policy. Or you may click “Decline”to refuse to consent.

Stay Connected

WOO Network connects traders, exchanges, institutions, and DeFi platforms with democratized access to the best-in-class liquidity and trading execution at zero or low cost.

Terms of Service Privacy Policy Information Security Statement