Ahead of the US Federal Reserve interest rate meeting scheduled on February 1, Bitcoin (BTC-USD) saw a drop to a weekend high of nearly $24,000 and into the mid $23,000 range, as per Coinmarketcap, a cryptocurrency trading platform. “Federal reserve meeting could be the litmus test for the digital asset market. If Fed continues with its rate hike, then we may see individuals moving away,” Mahin Gupta, founder, Liminal, a digital wallet infrastructure platform, told FE Blockchain.
Market analysts further noted that the cryptocurrency market recorded a high in Bitcoin prices. As per the Coinmarketcap data, Bitcoin reached a high of $23,955, a 3% increase in 24 hours, before settling down to around $23,300 on Monday. “In regards to specific cryptocurrency topics, the overall view remains positive with increased regularisation and transparency being implemented to consolidate the trust among the public,” Swapnil Pawar, founder, Newrl, a digital wallet platform, added.
Meanwhile, Consumer Price Index (CPI) data released on January 12, revealed that the dollar showed signs of receding amid the fear of inflation. “Amid the macroeconomic factors like inflation, we can expect a relaxation of monetary policies, which may improve the overall sentiment of the market at a macro level,” Pawar stated.
Furthermore, it is to be noted that the US registered a growth rate of 2.9% in the quarter ending December 2022, US gross domestic product (GDP) data, informed.
