Bitcoin price rises after Fed speech, but traders are going short again

Bitcoin (BTC) briefly broke above $17,000 yesterday morning and then found support around $16,900. Yesterday evening, after the speech of the Federal Reserve chairman and shortly before the end of the month, the BTC price made another big jump.

Bitcoin peaked around $17,250 last night, but is dropping towards $17,000 this morning. The BTC price stands at $17,100 on Binance and $16,400 on Bitvavo at the time of writing.

This means that the bitcoin price is up 1.2% today. Trading volume increased by 2% in the last 24 hours. The total market capitalization is $328 billion and the dominance is 38.3%.

Despite this, bitcoin closes the month in the red and the price is 17% down compared to November 1. The Fear & Greed Index comes out at 27 (Fear).

Fed speech causes share price rises

Last night’s rise followed Fed Chairman Jerome Powell’s speech. Although he didn’t provide much clarity and not exactly dovish sounded, he might have been less hawkish then feared. The market therefore expects the next rate hike to be 0.5% and not 0.75%.

We will find out exactly how high this will be after the next Federal Open Market Committee (FOMC) meeting on December 14. It takes place immediately after the next US consumer price index (CPI).

That could therefore be a few very volatile days. Not only crypto rose last night, other markets, such as the S&P 500, also saw a significant rebound.

Interview with Sam Bankman-Fried

That was not the only event yesterday. Also yesterday was the interview with Sam Bankman-Fried, the former CEO of the collapsed FTX, during the New York Times Dealbook Summit. Several curious statements were made. More on this later on Crypto Insiders.

Then yesterday we had a European Parliament hearing on the FTX crash. More about this will follow later on Crypto Insiders.

Is the market bullish or bearish on bitcoin?

Market sentiment seems to be recovering somewhat, reports researcher Ki Young Ju, CEO of CryptoQuant. He bases that on the hourly BTC premium price on Coinbase which is positive for the first time since the FTX crash.

However, bitcoin miners are under heavy pressure due to the low price and high costs. That could lead to more capitulation. It already means that we are currently seeing the third-highest BTC sales from miners ever, reports Charles Edwards:

In addition, analyst Byzantine General reports that people again short to go. This means that these investors expect another decline. However, it can also lead to a so-called short squeeze if they are wrong.

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