The Fed’s decisions are always watched by cryptocurrency investors, given that they tend to impact the price of Bitcoin. As always, expectations for the outcome depend on the direction the Fed chooses to curb inflation. Ultimately, the Fed’s decision to remain neutral defied all expectations, with one cryptocurrency CEO chiming in to explain what it means for Bitcoin prices.
Bitcoin Price Sees Positive Results
Didar Bekbauov, founder and CEO of Bitcoin pooled mining company Xive, has given his two cents on how the Federal Reserve’s decision could impact Bitcoin prices. The CEO told Bitcoinist that this latest move by the Fed could have a positive impact on prices.
Beckbaugh began by explaining that many financial experts do not expect the Fed to raise interest rates. The end result is that the central bank system has chosen to keep interest rates within the narrow range of 5.25-5.5% that it has held for the past 22 years.
The CEO said the Fed’s move actually made mainstream financial assets less attractive to investors. Instead, the capital preservation triggered by this decision will help drive Bitcoin prices, which may lead to a rebound in the coming weeks. Therefore, the move is positive for cryptocurrencies.
Bekbauov’s analysis of the impact is also consistent with Bitcoin’s price reaction to the decision. Despite occasional dips, the cryptocurrency’s price has remained in a good range between $26,000 and $27,000, which is higher than last week’s levels.
How will the future develop?
Looking ahead, Beckbaugh expects the Fed to maintain a dovish approach to interest rates through the end of the year. He believes this will bring support to Bitcoin at $35,000, which will then lead to Bitcoin prices breaking through the $31,700 year-to-date (YTD) mark.
Additionally, the CEO expects the upcoming halving and the hype around spot Bitcoin ETFs to lead to a rebound. Bekbauov said: “The promise of the Bitcoin network is also a major trigger for medium-term growth, as the hype around ETFs and halving will still guide investor interest moving forward.”
Currently, BTC remains firmly above the $26,600 support, indicating that bulls have finally found a foothold. However, the asset’s 6% daily trading volume drop may indicate a drop in interest over the weekend.
BTC drops below $26,600 support | Source: BTCUSD on Tradingview.com