Bitcoin Surges to $39,000 following Fed Inflation Commentary
Powell: Calling end to hikes would be “premature”
Bitcoin (BTC) reached the $39,000 mark for the first time since May 2022, thanks to the market’s reaction to the latest Fed inflation commentary. Data from Cointelegraph Markets Pro and TradingView confirmed this new 19-month high on Bitstamp.
The surge happened as Fed Chair Jerome Powell addressed the audience at Spelman College in Atlanta, Georgia, and expressed caution in concluding that the Fed has achieved a sufficiently restrictive stance or speculating when policy might ease. Despite this cautious tone, Powell’s comments appeared to boost risk asset sentiment.
The Kobeissi Letter offered a more level-headed perspective on the future actions of the Fed. The financial commentary resource indicated that the Fed’s narrative has remained consistent, but the markets are anticipating a change in direction.
BTC price targets extend beyond $39,000
Following Powell’s speech, Bitcoin markets were quick to capitalize on the optimistic mood, in contrast to the subdued reaction to earlier U.S. macro data prints. The next Federal Open Market Committee (FOMC) meeting is scheduled for mid-December, when any changes to interest rates will be announced.
Popular trader Daan Crypto Trades highlighted the sell-side liquidity involved in the brief surge to $39,000, while Keith Alan, co-founder of trading resource Material Indicators, pointed out significant resistance overhead at $39,000 and $39,200, with substantial buyer support at $38,000.
The surge in Bitcoin was further analyzed by various traders, with BitQuant predicting a powerful signal if Bitcoin closes above $38,000 and Crypto Ed forecasting potential upside to at least $39,200.
As CME Group’s FedWatch Tool indicated, market expectations favored a pause in interest rate hikes as of December 1. The surge in BTC price also demonstrated the market’s anticipation of potential policy changes by the Fed.
In conclusion, the surge in Bitcoin to $39,000 reflects the market’s reaction to the latest Fed inflation commentary, with traders and analysts signaling a bullish sentiment for the cryptocurrency’s future price targets.
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