This week, the Fed will declare its initial interest rate decision for 2024. Analysts anticipate the first rate reduction, which could increase the price of Bitcoin, by March.
As the U.S. equity markets supported Bitcoin’s robust ascent to the top on January 26, the price of the cryptocurrency surged.
Presently trading at $42,185, Bitcoin, which has a market cap of $827 billion, is aiming for $43,000.
Fed to Announce Initial Interest Rate Decision for 2024
This week signifies a pivotal moment as the Federal Reserve readies itself to unveil its preliminary determination on interest rates for the year 2024.
Meanwhile, the Chicago Mercantile Exchange (CME) data reveals a substantial consensus, as 96.9% of indicators anticipate interest rates to remain unchanged.
Conversely, as the subsequent decision approaches in March, sentiment changes significantly, with a significant 47% probability indicating the possibility of a 25-basis-point reduction in interest rates.
Recognizing the extent to which such decisions can affect numerous economic sectors, investors and analysts are diligently observing these developments.
However, given that the forthcoming Bitcoin halving will occur the following month, in April 2024, the March decision will be of the utmost importance.
Any rate reduction before the halving could result in a substantial increase in the price of Bitcoin in the future.
Moreover, the dissemination of significant economic data, such as the January unemployment rate, is anticipated to coincide with the announcement made by the Federal Reserve.
The unemployment rate is a crucial indicator that offers perspectives on the overall state of the labor market and impacts wider economic attitudes.
Market participants will closely monitor these events throughout the week in search of indications regarding the future course of monetary policy and economic conditions in the United States.
Bitcoin Price To Rally In February?
This month marked a significant turning point for the crypto community with the introduction of Bitcoin ETFs in the United States.
However, the price of Bitcoin has experienced selling pressure, falling to a low of $38,000 in January.
Nonetheless, the price of Bitcoin may experience a slight rebound in the following month of February.
Based on historical data, Bitcoin has exhibited a consistent pattern in February, with an average return of 14.5% and a notable absence of negative returns since 2020.
According to data compiled by CryptoRank between February 2011 and 2023, Bitcoin has exhibited a substantial average profitability of 14.5%, with the median value trailing closely at 12.2%.
