{"id":546335,"date":"2023-02-01T13:21:36","date_gmt":"2023-02-01T10:21:36","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoin-meets-fomc-after-39-january-gains-with-fed-path-uncertain\/"},"modified":"2023-02-01T13:21:36","modified_gmt":"2023-02-01T10:21:36","slug":"bitcoin-meets-fomc-after-39-january-gains-with-fed-path-uncertain","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoin-meets-fomc-after-39-january-gains-with-fed-path-uncertain\/","title":{"rendered":"# Bitcoin meets FOMC after 39% January gains with Fed path &#8216;uncertain&#8217;"},"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-6a3ab83d3642f\" 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-6a3ab83d3642f\" 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-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-meets-fomc-after-39-january-gains-with-fed-path-uncertain\/#%E2%80%9D_Bitcoin_meets_FOMC_after_39_January_gains_with_Fed_path_%E2%80%98uncertain_%E2%80%9C\" >&#8221; Bitcoin meets FOMC after 39% January gains with Fed path &#8216;uncertain&#8217; &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-meets-fomc-after-39-january-gains-with-fed-path-uncertain\/#End_of_Bitcoin_bear_market_is_%E2%80%9Cdefault_view%E2%80%9D\" >End of Bitcoin bear market is &#8220;default view&#8221;<\/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-meets-fomc-after-39-january-gains-with-fed-path-uncertain\/#Dollar_strength_eyes_key_rebound\" >Dollar strength eyes key rebound<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Bitcoin_meets_FOMC_after_39_January_gains_with_Fed_path_%E2%80%98uncertain_%E2%80%9C\"><\/span>&#8221; Bitcoin meets FOMC after 39% January gains with Fed path &#8216;uncertain&#8217; &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-5a4050f8>Bitcoin (BTC) hovered around $23,000 on Feb. 1 after sealing its best January performance in ten years.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/4d590762-f1c9-4783-816a-1f1813022255.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USD 1-hour candle chart (Bitstamp). Source: TradingView<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"End_of_Bitcoin_bear_market_is_%E2%80%9Cdefault_view%E2%80%9D\"><\/span>End of Bitcoin bear market is &#8220;default view&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Data from Cointelegraph Markets Pro and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/symbols\/BTCUSD\/?exchange=BINANCE\">TradingView<\/a> confirmed a monthly close of around $23,100 for BTC\/USD \u2014 its highest since July 2022.<\/p>\n<p>The largest cryptocurrency finished the first month of the year up 39.6%, according to statistics from <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.coinglass.com\/today\">Coinglass<\/a>.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/fe7d6526-64c4-47c2-9f7d-b0ad71d0cd0f.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USD monthly returns comparison (screenshot). Source: Coinglass<\/em><\/figcaption><\/figure>\n<p>The impressive performance emboldened bulls, many of whom had kept the faith despite mass misgivings from more conservative market participants. <\/p>\n<p>\u201cBitcoin closes with a Monthly swing low,\u201d trader, entrepreneur and investor Bob Loukas <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/BobLoukas\/status\/1620578906167451648\">reacted<\/a>. <\/p>\n<blockquote><p>\u201cI mean, anything can h<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>en, right. But the absolute default view must be the bear market ended in Dec.\u201d<\/p><\/blockquote>\n<p>As Cointelegraph reported, opinions differ considerably over how Bitcoin will behave in February, with one trader expecting \u201cbearish\u201d conditions to return after five-month highs.<\/p>\n<p>The picture for the month ahead continues to be clouded by macroeconomic triggers. Notably, Feb. 1 will see the United States Federal Reserve confirm its next interest rate hike, with the European Central Bank doing the same on Feb. 2.<\/p>\n<p>While the former hiking 25 basis points (bps) is all but \u201cunanimously\u201d priced in, crypto research and analysis firm Arcane Research says, the future remains less certain.<\/p>\n<p>\u201cDue to a relatively strong market recovery, Chair Powell may take the advantage to maintain hawkish restrictive undertones, emphasizing the importance of incoming economic data,\u201d it argued in a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/arcane.no\/research\/wednesday-fomc-primer\">blog post<\/a> released on Jan. 31, adding that consensus \u201cexpects a 25bps hike on Wednesday and another 25bps hike to 475bps on March 22.\u201d<\/p>\n<p>\u201cCurrently, zero adjustments during the May 3 and June 14 FOMC meetings are priced as the most likely outcome, but a further hike of 25bps remains within the realm of possibility,\u201d it noted.<\/p>\n<p>Expectations of a 25-basis-point hike totaled 99.3% at the time of writing, according to CME Group&#8217;s <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cmegroup.com\/markets\/interest-rates\/cme-fedwatch-tool.html\">FedWatch Tool<\/a>.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/63e1c1c6-f590-4660-9151-7e54854e8347.png\"><figcaption style=\"text-align: center;\"><em>Fed target rate probabilities chart. Source: CME Group<\/em><\/figcaption><\/figure>\n<p>Should the door be open for surprises, volatility may increase as a result, with rate hike decisions already a classic catalyst. <\/p>\n<p>Arcane nonetheless showed that with each passing hike, volatility around the Fed\u2019s move has cooled.<\/p>\n<p>\u201cThis could suggest that the trend of massive FOMC-induced volatility in BTC is receding,\u201d it concluded.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/d0d65302-841e-44c4-9824-75e25ba69e66.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin volatility comparison chart (screenshot). Source: Arcane Research<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Dollar_strength_eyes_key_rebound\"><\/span>Dollar strength eyes key rebound<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Another concern for crypto performance comes in the form of U.S. dollar strength.<\/p>\n<p><strong><em>Related:\u00a0Best January since 2013? 5 things to know in Bitcoin this week<\/em><\/strong><\/p>\n<p>In a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/qcp.capital\/market-updates\/market-update-27-jan-23\/\">market update<\/a> last week, trading firm QCP Capital warned subscribers that a \u201cmassive positive divergence\u201d was in play on the U.S. dollar index (DXY).<\/p>\n<p>Traditionally inversely correlated with risk assets, DXY has been in a downtrend since mid-2022, but has stemmed losses into the new year. <\/p>\n<p>\u201cThis is the same setup we saw in BTC\/ETH in Dec &#8211; and as we witnessed there, any breakout to the topside will therefore be extremely sharp and violent,\u201d QCP wrote.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/3816f553-110b-41f5-bc9d-6e9b0e7c4872.png\"><figcaption style=\"text-align: center;\"><em>U.S. dollar index (DXY) 1-day candle chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p class=\"post-content__disclaimer\">The views, thoughts and opinions expressed here are the authors\u2019 alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\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-meets-fomc-after-39-january-gains-with-fed-path-uncertain\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Bitcoin meets FOMC after 39% January gains with Fed path &#8216;uncertain&#8217; &#8220; Bitcoin (BTC) hovered around $23,000 on Feb. 1 after sealing its best January performance in ten years. BTC\/USD 1-hour candle chart (Bitstamp). Source: TradingView End of Bitcoin bear market is &#8220;default view&#8221; Data from Cointelegraph Markets Pro and TradingView confirmed a monthly&#8230;<\/p>\n","protected":false},"author":1,"featured_media":546336,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/44af8a22-016f-4ebc-a1e8-a64a082b99fb.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,73785],"class_list":["post-546335","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/546335","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=546335"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/546335\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/546336"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=546335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=546335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=546335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}