{"id":403091,"date":"2022-02-03T10:59:44","date_gmt":"2022-02-03T07:59:44","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/the-us-federal-reserve-is-making-some-analysts-bullish-on-bitcoin-again\/"},"modified":"2022-02-03T10:59:44","modified_gmt":"2022-02-03T07:59:44","slug":"the-us-federal-reserve-is-making-some-analysts-bullish-on-bitcoin-again","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/the-us-federal-reserve-is-making-some-analysts-bullish-on-bitcoin-again\/","title":{"rendered":"# The US Federal Reserve is making some analysts  bullish on Bitcoin again"},"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-6a407aa2acda5\" 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-6a407aa2acda5\" 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\/the-us-federal-reserve-is-making-some-analysts-bullish-on-bitcoin-again\/#US_factory_activity_employment_drops\" >U.S. factory activity, employment drops<\/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\/the-us-federal-reserve-is-making-some-analysts-bullish-on-bitcoin-again\/#Fed_officials_now_cautiously_hawkish\" >Fed officials now cautiously hawkish<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># The US Federal Reserve is making some analysts  bullish on Bitcoin again <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Signs of a steady Bitcoin (BTC) price recovery emerged earlier this week as investors shifted away from the U.S. dollar on weaker-than-expected economic data.<\/p>\n<p>In detail, Bitcoin&#8217;s drop last week to below $33,000 met with a healthy buying sentiment that pushed its per token rate to as high as $39,300 on Feb. 1. As of Thursday, BTC&#8217;s price dipped below $37,000 but was still up 13% from its local bottom.<\/p>\n<p>Meanwhile, the U.S. dollar index (DXY), which measures the greenback&#8217;s strength against a basket of top foreign currencies, rose to 97.441 last Friday, logging its best level since July 2020. However, the index corrected by nearly 1.50% to over 96.00 by Feb. 3.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-02\/6349b2b2-3b16-46e3-b092-2eb9cf8252d5.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>DXY vs. BTC\/USD daily price chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Some market analysts saw the dollar&#8217;s renewed weakness as a sign of waning rate hike fears.<\/p>\n<p>For instance, Lyn Alden, the founder of Lyn Alden Investment Strategy, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/LynAldenContact\/status\/1488533175001391108\">tweeted<\/a> that the Fed &#8220;reached a fever height last week in terms of making more and more aggressive tightening scenarios,&#8221; noting that the central bank may turn dovish as &#8220;economic deceleration\/weak PMI data takes center stage.&#8221;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"US_factory_activity_employment_drops\"><\/span>U.S. factory activity, employment drops<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Alden cited the U.S. manufacturing growth, which, according to data released on Tuesday, dropped for the third month in a row in Jan. 2022. Notably, the\u00a0Institute for Supply Management\u2019s gauge of factory activity <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.prnewswire.com\/news-releases\/manufacturing-pmi-at-57-6-january-2022-manufacturing-ism-report-on-business-301472006.html\">reached<\/a> 57.60, its worst level since Nov. 2020, compared to 58.80 a month earlier.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-02\/e1c378bb-cf71-4b1e-a4ea-22fa33470814.png\"><figcaption style=\"text-align: center;\"><em>U.S. manufacturing growth data. Source: ISM, Bloomberg<\/em><\/figcaption><\/figure>\n<p>Additionally, the ADP Research Institute data released Wednesday also showed cracks in the ongoing U.S. economic recovery, revealing that employment across the regional companies fell by 301,000 in December 2021, the highest since the early days of the Covid-19 pandemic.<\/p>\n<p>The lower-than-anticipated data came a week after the Federal Reserve Chairman Jerome Powell&#8217;s press conference. He\u00a0raised speculations about raising interest rates three times in 2022 to tame the rising U.S. inflation.<\/p>\n<p>Powell&#8217;s hawkish turn pushed the price of Bitcoin down\u00a0as the U.S. dollar strengthened. <\/p>\n<p>Currently, U.S. rate futures hint at four to five rate hikes in 2022. James Bullard, president of the Fed&#8217;s St. Louis branch, further <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.reuters.com\/business\/feds-bullard-sees-rate-hikes-now-then-time-assess-2022-02-01\/\">stoked the &#8220;tightening&#8221; fears<\/a>, stating earlier this week that five rises were &#8220;not too bad a bet.&#8221;<\/p>\n<p>Nonetheless, his hawkish comments coincided with a recovery rally in the Bitcoin market as the dollar pared gains, prompting Alden and other analysts to say that the market may have overreacted to Powell&#8217;s tightening outlook.\u00a0<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Fed_officials_now_cautiously_hawkish\"><\/span>Fed officials now cautiously hawkish<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>One of the primary catalysts behind the Fed&#8217;s rate hike plans was a steady recovery in the U.S. jobs market. But with lesser-than-expected ADP readings, the central bank could backtrack on its tightening plans.\u00a0<\/p>\n<p>&#8220;They have moved from nearly all talk and little action to 100% hot air,&#8221; <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/PrestonPysh\/status\/1488534017226022917\">noted<\/a> Preston Pysh, the founder of the Pylon Holding Company.<\/p>\n<p><strong><em>Related:\u00a0US crypto executive order looms \u2014 5 things to watch in Bitcoin this week<\/em><\/strong><\/p>\n<p>Some Fed officials have also noted that the central bank might not go ahead with rate hikes as aggressively as anticipated. <\/p>\n<p>For instance, Kansas City Fed President Esther George <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/newsletters\/2022-02-01\/five-things-you-need-to-know-to-start-your-day\">said<\/a> &#8220;unexpected adjustments&#8221; would not be in anybody&#8217;s interest. Similarly,\u00a0San Francisco Fed chief <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-01-31\/fed-s-daly-says-rates-could-rise-in-march-urges-gradual-shift\">Mary Daly<\/a> also cautioned against tightening too quickly.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Fed @ max hawkishness. Dovish from here. Implications for the dollar.<\/p>\n<p>\u2014 Teddy Vallee (@TeddyVallee) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/TeddyVallee\/status\/1487062636877516801?ref_src=twsrc%5Etfw\">January 28, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Currently, the CME&#8217;s Fed Watch Tool <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cmegroup.com\/trading\/interest-rates\/countdown-to-fomc.html\">predicts<\/a> a 94.40% possibility of a 25 bps rate hike in March 2022. But whether there would be back-to-back increases for the rest of 2022 remains unclear.\u00a0<\/p>\n<p>&#8220;They will hike, but not as much as the forward curve implies,&#8221; <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/TeddyVallee\/status\/1488557421249187842\">wrote<\/a> Teddy Vallee, the founder of Parvelle Global, a New York-based hedge fund, adding: <\/p>\n<blockquote><p>&#8220;Digital asset space pricing in worst case.&#8221;<\/p><\/blockquote>\n<p>As a result, the very narrative that pushed the Bitcoin price to new multi-month lows last week <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>ears to be showing cracks.<\/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<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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In detail, Bitcoin&#8217;s drop last week to below $33,000 met with a healthy buying sentiment that pushed&#8230;<\/p>\n","protected":false},"author":1,"featured_media":403092,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDIvM2NkMGFlN2UtNzM1YS00YjkxLWEwYWMtMjE0YjA0NmE5MjMwLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,81951,74937,74982,81262,79109,74939,75150,70550,70551,70552,73785],"class_list":["post-403091","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-analysis","tag-bitcoin-price","tag-btc-markets","tag-cryptomarket","tag-interest-rate","tag-market-analysis","tag-market-update","tag-federal-reserve","tag-inflation","tag-interest-rates","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/403091","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=403091"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/403091\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/403092"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=403091"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=403091"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=403091"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}