Analysts expect the trend for Bitcoin (BTC) will change after the Fed announced it would raise interest rates three times to combat inflation. Traders expect a significant recovery of the Bitcoin market since the current price range indicates a good accumulation zone.
After the US Federal Reserve (Fed) announced its 2022 plans, some cryptocurrency analysts expect a change in the trend in the price of Bitcoin (BTC). The government agency said it seeks to raise interest rates three times to combat inflation. Although their decisions are still uncertain, they might continue tightening fiscal policy to control prices.
The president of the Fed, Jerome Powell, stated that they would keep interest rates at levels close to zero. However, the entity will change that decision and start raising them to contain inflation in the economy.
The Trend in the Price of Bitcoin Might Change in 2022
Amid the economic crisis due to the COVID-19 pandemic, people are worried about the growing inflation worldwide. Although the US Federal Reserve chose to change its message, nobody knows what will happen to the price trend of Bitcoin.
After the statement, the financial and cryptocurrency markets have seen a recovery, showing signs of optimism. The price of Bitcoin rose to USD 49,040 after the Fed announced that they would reduce the monthly purchase of bonds. They also said they would estimate the increase in interest rates for 2022.
Analysts Made Their Predictions about the Price of Bitcoin
Since the Fed announced its 2022 plans, traders expect a significant recovery of the Bitcoin market. In that regard, analysts consider that the current price range indicates a good accumulation zone.
Cryptocurrency trader John Wick posted a chart on Twitter, highlighting the bullish and bearish pullbacks in the last two weeks.
He explained that traders have built a solid support base and expect an increase in volatility. He added that the upcoming setup would be a squeeze, suggesting a stage on fire.
The Bullish Run of the Price of Bitcoin Will Continue
Twitter user Crypto Ed NL foresaw a rebound in the price of Bitcoin in the future. The chart he posted indicates that price action could unfold in the coming weeks.
The analyst/trader predicted one more leg to the downside before the FOMC meeting in the green boxes. A rebound in the price after the FOMC will indicate the continuation of the bullish run.
Billionaire investor Mike Novogratz said that he expects the price of Ether (ETH) to exceed that of Bitcoin. He thinks this will happen while the Fed seeks a way to deal with inflation. Novogratz will remain bullish on Bitcoin, Ether and the cryptocurrency market in general in the long term.
He pointed out that new players want to participate in the cryptocurrency economy. Besides, he does not believe that the price of Bitcoin will drop below USD 40,000.
The forecasts by those analysts are not a guarantee of future results in the price of Bitcoin. However, they can help investors understand what is happening in the market to make better decisions. Of course, they should always do their research before putting their money on any crypto asset.
By Alexander Salazar
