The Bitcoin price seems to be slowly but surely on the way up. In any case, we started the new week with an increase of more than 2 percent, which brings the price to $ 17,300. Is the $17,000 price the new $16,000 for Bitcoin?
Speech by Jerome Powell
The rises seem to stem from last week’s speech by Federal Reserve Chairman Jerome Powell. In this he was quite lenient about future interest rate hikes. The US central bank will meet on December 14 to make a new interest rate decision. It is expected that they will already reduce the pace of interest rate hikes at that meeting.
While we were faced with an interest rate increase of 0.75 percent in recent meetings, an increase of 0.50 percent is now on the agenda. At least, that is the expectation for now. It seems that the Federal Reserve is also starting to worry about its own aggressive rate hikes.
The actual effect of this remains to be seen. If the Federal Reserve raises interest rates by 5 percent today, the economy will not immediately feel it. The economy only feels that once individuals, companies and the government have to refinance their debts. That moment is getting closer.
$20,000 coming up?
In a email to CoindeskBitBull Capital’s Joe DiPasquale said the market reacted positively, but it’s only just getting started. “We need to see if Bitcoin can hold above USD 17,000 and then possibly test USD 20,000. If that works out, we can think of a sustainable recovery,” says DiPasquale. By a sustainable recovery, he obviously means a further increase above $ 20,000.
When DiPasquale looks down, his focus is mainly on the $16,000 price. If Bitcoin loses that mark, there is a chance that we will fall further and the bear market will take another dark tail. In that respect, it is to be hoped that Bitcoin can maintain itself at this price level and that the bulls finally offer some resistance to the bears.
