Is Bitcoin’s (BTC) journey to the coveted $38,000 mark proving to be an uphill battle? Despite the cryptocurrency’s value remaining relatively stable in the past day, major tokens have seen a pullback from the gains they accrued during the early November surge. This update comes from analysts at the Bitfinex crypto exchange who shared their insights on Tuesday, speculating that the Federal Reserve will maintain the current interest rates in their December meeting.
Bitcoin’s Struggle to Break the $38,000 Barrier
Over the past 24 hours, Bitcoin’s price has shown little change. However, significant tokens have surrendered the profits they earned from the rallies at the start of November. Bitcoin experienced a modest increase of 0.6% on Tuesday, with its trading value hovering just above $37,220. Other cryptocurrencies such as Ethereum (ETH), Dogecoin (DOGE), and Solana (SOL) experienced a dip, with losses ranging up to 5%. This downturn is likely a result of investors cashing in on their profits.
On the other hand, BNB Chain’s (BNB) tokens saw an initial rise of up to 8% on the news that Binance, the crypto exchange that initially issued the tokens, is set to pay $4 billion to settle various charges in the United States.
Anticipated Sideways Bitcoin Price Movement
Some traders predict that Bitcoin will continue to trade sideways in the coming weeks. This expectation stems from the challenges faced by its recent rally due to uncertainties surrounding the Federal Reserve’s future actions and delays in a significant regulatory decision on ETFs. Analysts from the Japanese exchange Bitbank, led by Yukari Kusu, stated, “The upward movement is currently suppressed at the $38,000 psychological level.” They further added, “One reason Bitcoin cannot surpass this level is the SEC delaying its decision on Thursday on the approval or rejection of Hasdex’s Bitcoin ETF.”
Will the Fed Hold Interest Rates Steady?
Analysts at Bitfinex crypto exchange shared their expectation on Tuesday that the Federal Reserve will maintain steady interest rates in the December meeting. They noted, “Headline inflation has significantly dropped from 6.4% at the beginning of the year. This should give the Fed enough room to keep interest rates steady at the December meeting, which will be in line with current expectations in the Fed Futures market.” They concluded, “Interest rate decisions tend to move markets. Higher interest rates often negatively impact assets such as stocks and cryptocurrencies, risk assets where investors can profit by investing in bonds.”
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