{"id":400067,"date":"2022-01-27T22:15:00","date_gmt":"2022-01-27T19:15:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoin-gives-back-gains-after-fed-comments-add-downside-risks-to-crypto-markets\/"},"modified":"2022-01-27T22:15:00","modified_gmt":"2022-01-27T19:15:00","slug":"bitcoin-gives-back-gains-after-fed-comments-add-downside-risks-to-crypto-markets","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoin-gives-back-gains-after-fed-comments-add-downside-risks-to-crypto-markets\/","title":{"rendered":"# Bitcoin \u2018gives back gains\u2019 after Fed comments \u2018add downside risks\u2019 to crypto markets"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a30aa5022710\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a30aa5022710\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-gives-back-gains-after-fed-comments-add-downside-risks-to-crypto-markets\/#A_year_of_%E2%80%9Crange_bound%E2%80%9D_trading\" >A year of &#8220;range bound&#8221; trading<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-gives-back-gains-after-fed-comments-add-downside-risks-to-crypto-markets\/#The_Fed_continues_to_add_downside_risks\" >The Fed continues to add downside risks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-gives-back-gains-after-fed-comments-add-downside-risks-to-crypto-markets\/#Short-term_weakness_long-term_strength\" >Short-term weakness, long-term strength<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Bitcoin \u2018gives back gains\u2019 after Fed comments \u2018add downside risks\u2019 to crypto markets <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Bitcoin (BTC) price continues to flash mixed signals, raising uncertainty among investors and negatively impacting asset prices across the market.<\/p>\n<p>Data from Cointelegraph Markets Pro and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/\">TradingView<\/a> shows BTC price pinned below $36,000 and even though crypto and equities markets underwent a brief relief rally on Wednesday, comments from the recent FOMC meeting <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ear to be settling in as investors internalize the fact that interest rate hikes are on the way.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/48e433cd-44ac-4903-9084-4178aac07e6e.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USDT 1-day chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Here\u2019s a look at what analysts and traders are saying about Bitcoin&#8217;s most recent price action and the macroeconomic factors impacting the wider crypto market.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"A_year_of_%E2%80%9Crange_bound%E2%80%9D_trading\"><\/span>A year of &#8220;range bound&#8221; trading<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The long-term range-bound trading that BTC has been in since early 2021 was addressed by Mike McGlone, Senior Commodity Strategist for Bloomberg Intelligence, who <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/mikemcglone11\/status\/1486664371388522504\">posted<\/a> the following chart and asked, \u201cWhat ends Bitcoin, Ethereum range trade?<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/bf80cbc2-7154-4691-9f41-f2a9c904721d.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>BTC\/USD 1-week chart. Source: <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a><\/em><\/figcaption><\/figure>\n<p>According to McGlone, the key to escaping the current range are the \u201cbullish fundamentals\u201d that back the underlying strength of Bitcoin. <\/p>\n<p>McGlone said, <\/p>\n<blockquote><p>\u201cBy the rules of economics, a market with rising demand and declining supply will go up over time, suggesting that Bitcoin may be forming a bottom again around $30,000 as $60,000 resistance ages.\u201d<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"The_Fed_continues_to_add_downside_risks\"><\/span>The Fed continues to add downside risks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A deeper analysis on the impact of Wednesday\u2019s Federal Reserve meeting was provided by Bilal Hafeez, CEO and head of research at <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.macrohive.com\">Macro Hive<\/a>, who noted that the tone of the meeting \u201cturned out to be more hawkish than expected.\u201d<\/p>\n<p>Hafeez pointed to the decision by the Fed to raise the inflation forecast as a sign that the central bank has realized that \u201cthey need to be more hawkish than before,\u201d and he highlighted Powell\u2019s comments that \u201cthis cycle would be different to the last cycle, which suggests faster hikes than before.\u201d<\/p>\n<p>With that being said, Hafeez indicated that the Fed \u201chas not decided on a path yet,\u201d and noted that Powell \u201cdidn\u2019t give much additional information on quantitative tightening except that it would operate in the background.\u201d<\/p>\n<p>Hafeez said, <\/p>\n<blockquote><p>\u201cOverall, the Fed is comfortable with equity and risk markets selling off as it tightens financial conditions and so could reduce inflation. Bond yields have risen after the meetings, equity and crypto markets have given back gains. The Fed continues to add downside risks to risky markets.\u201d<\/p><\/blockquote>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Derivatives data suggests that Bitcoin\u2019s $39K bounce was a mere blip<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Short-term_weakness_long-term_strength\"><\/span>Short-term weakness, long-term strength<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The near-term outlook for BTC was briefly touched upon by derivatives traders and pseudonymous Twitter user \u2018Crypto McKenna\u2019, who <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Crypto_McKenna\/status\/1486671240962220034\">posted<\/a> the following chart and stated that \u201cBTC price action is about to get very boring.\u201d<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/cce39ca1-3e4e-42fe-9153-dcf2a51368c2.jpg\"><figcaption style=\"text-align: center;\"><em>BTC\/USD 6-hour chart. Source: Twitter<\/em><\/figcaption><\/figure>\n<p>McKenna said, <\/p>\n<blockquote><p>\u201cNo trade season for the next 10-20 days in my opinion.\u201d<\/p><\/blockquote>\n<p>Despite this projection for near-term weakness and sideways price action, the long-term outlook continues to brighten for multiple reasons, as noted in the following Tweet from crypto analyst Will Clemente. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Bitcoin price weakness because of risk-off behavior while fundamentals strengthening: Intel creating mining chips, Russia looking to get involved in mining, Goldman Sachs bullish, Google partnership w\/ Coinbase, El Salvador Bond.<\/p>\n<p>Hard to think asymmetry is to the downside.<\/p>\n<p>\u2014 Will Clemente (@WClementeIII) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/WClementeIII\/status\/1486736315957886984?ref_src=twsrc%5Etfw\">January 27, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The overall cryptocurrency market cap now stands at $1.663 trillion and Bitcoin\u2019s dominance rate is 41.5%.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bitcoin-gives-back-gains-after-fed-comments-add-downside-risks-to-crypto-markets\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Bitcoin \u2018gives back gains\u2019 after Fed comments \u2018add downside risks\u2019 to crypto markets &#8221; Bitcoin (BTC) price continues to flash mixed signals, raising uncertainty among investors and negatively impacting asset prices across the market. Data from Cointelegraph Markets Pro and TradingView shows BTC price pinned below $36,000 and even though crypto and equities markets&#8230;<\/p>\n","protected":false},"author":1,"featured_media":400068,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDEvZTdiN2RjMGMtZDU3MC00MmY0LTkxYTctYzgyMDE0YWM2NjhlLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,74982,74863,79109,75150,70550,70552,73785],"class_list":["post-400067","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-btc-markets","tag-cryptocurrencies","tag-interest-rate","tag-market-update","tag-federal-reserve","tag-interest-rates","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/400067","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=400067"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/400067\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/400068"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=400067"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=400067"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=400067"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}