The United States Federal Reserve’s decision has been on the radar of crypto investors given how the outcome has often affected the Bitcoin price. As usual, expectations were presented for the outcome depending on what direction the Fed chose to go in in its bid to curb inflation. In the end, the Fed’s decision to remain neutral dashed all expectations, and a crypto CEO has chimed in to explain what this means for the Bitcoin price.
A Positive Outcome For The Bitcoin Price
Didar Bekbauov, Founder and CEO of Bitcoin joint mining company Xive, has given his two cents on how the Fed’s decision has impacted the Bitcoin price. The CEO told Bitcoinist that this latest move by the Fed could be positive for the price.
Bekbauov starts out by explaining that many experts in the financial industry expected that the US Fed would not hike interest rates. This ended up being the case as the central banking system chose to keep rates within its tight range of 5.25-5.5% that has held for the last 22 years.
According to the CEO, this move by the Fed actually makes mainstream financial assets less appealing to investors. Instead, the capital retention triggered by this decision would help drive the Bitcoin price which could lead to a rally in the coming weeks. As such, the move was positive for the cryptocurrency.
Bekbauov’s analysis of the impact is also in line with how the Bitcoin price has responded to the decision. Although there have been dips here and there, the cryptocurrency’s price has maintained a good range between $26,000 and $27,000, bringing it higher than last week’s levels.
How Does This Play Out Going Forward?
Going forward, Bekbauov expects that the Fed will remain dovish in its approach to interest rates through the end of the year. He believes that this will lead to support for Bitcoin at $35,000 and then lead to a rise above the year-to-date (YTD) price mark of $31,700.
Additionally, the CEO expects the upcoming halving as well as the Spot Bitcoin ETF hype to lead to a rally. “Bitcoin’s network promises are also a major trigger to boost growth in the mid-term as the hype surrounding the ETF and halving remains on the horizon to guide investors’ interest moving forward,” Bekbauov said.
For now, BTC is still holding steady above the $26,600 support which suggests that bulls have finally found their footing. However, the 6% decline in the asset’s daily trading volume could point to a drop in interest going into the weekend.
BTC drops below $26,600 support | Source: BTCUSD on Tradingview.com