Bitcoin holds onto 10% gains ahead of crucial Fed rate hike comments

Bitcoin (BTC) continued to rise after the resurrected stock market won the largest cryptocurrency in excess of $37,500 on Tuesday.

BTC/USD 1-hour candlestick chart (bitstamp). Source: TradingView.

The Fed can create new volatility

According to data from Cointelegraph Markets Pro and TradingView, BTC/USD trading on Tuesday exceeded $36,000, for a total increase of up to 24 hours against the floor on Monday by 14%.

Bitcoin’s correlation to equities continued to focus on the opening of a new Wall Street and important information on interest rates from the US Federal Reserve Board.

The Federal Reserve Board’s Federal Open Market Committee (FOMC) will meet on Wednesday, and interest rate news could have an immediate impact on both traditional and crypto markets.

“Tomorrow’s FEDFOMC meeting could mean more volatility this week,” said Cointelegraph contributor Michaelëlvande Poppe. predict..

Rate hikes will follow the Fed’s declining asset purchases, and Bitcoin’s sentiment will be hit in advance as the end of “easy” liquidity approaches.

However, the purchase of the asset should be completed by March, and the Fed says it should not raise rates before that.

Mike McGlone, Chief Commodity Strategist at Bloomberg Intelligence, said: wrap up With a hopeful outlook for BTC.

“The correlation is heading for one-to-one.”

BTC/USD vs S&P500 Correlation Chart. Source: Mike McGlone / Twitter

Earlier this month, McGlone said Bitcoin could rebound stronger than stocks if it sees a long-term correction of up to 20%. Now, he added, altcoin is likely to fail to bring a solid comeback.

Major altcoins will be wiped out in early fall

Nonetheless, on the topic of Altcoin, these were Ethereum (ETH), which is in line with Bitcoin’s progress, and showed solid performance on the day.

Related: “Stop selling panic” — Bitcoin whales put spare BTC in their bags as their exchange balances go down

ETH/USD rose 7.3% at the time of writing, trading at $2,420, but previously hit a low of $2,160. This is the worst result since mid-July.

ETH/USD 1-hour candlestick chart (bitstamp). Source: TradingView.

V-shaped recovery was also seen in other large cap altcoins such as Binance Coin (BNB) and Solana (SOL).

“The good thing is that most of the altcoins are completely retraced, so we’re getting closer and closer to the next impulse rally of altcoins,” van de Poppe said. Insisted Before the rally.

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