The Fed's decision to hold interest rates steady, citing elevated inflation, has prompted a moderate reaction in the Bitcoin market. While the Fed's stance remains hawkish, the market focuses on the upcoming PCE price index release, which could influence Bitcoin's price trajectory. Crypto strategist Matt Mena suggests that positive inflation data could push BTC to $108K and $110K, and highlights liquidity levels as potential price magnets.
reacted moderately and reclaimed $105K. On the 29th of January, the Fed held interest steady at 4.25%- 4.5%, citing elevated inflation as the reason for the rate pause.
“The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid. Inflation remains somewhat elevated.”Despite the ‘hawkish stance,’ Chair Jerome Powell was not overly bearish during the press conference. In fact, he was open to dropping rates even if the 2% inflation goal wasn’t met.Interestingly, President Donald Trump didn’t approve the Fed’s rate pause decision and slammed Powell. He added that he would handle U.S.
“While today’s Fed decision didn’t shake the market, investors are waiting for confirmation that rate cuts are on the horizon. Until then, BTC is likely to consolidate within its current range, with $105K as the key breakout level and $108K as the next major upside target if Friday’s data tilts in favor of risk assets.”In most cases, high liquidity pockets act as price magnets. In a liquidity sweep scenario, BTC could target the immediate liquidity levels at $108K and $110K.
However, a bearish sentiment from the inflation data could drag BTC to the lower side pocket of liquidity at $97.5K.Benjamin is a Telecommunication Engineering graduate who is passionate about crypto-markets and unraveling market trends. Armed with charts and patterns, he's interested in making the intricate, complex landscape of digital assets more palatable for every user.Subscribe to get it daily in your inbox.
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