Bitcoin Holds Above $38,000 Amid Market Correction Warnings and Predictions for Early Fed Rate Cut
Summary:
Bitcoin maintained its momentum above $38,000 on Nov 29, despite warnings about potential market corrections. Experts have remarked on the activity and influence of large-scale traders on the market. Jerome Powell, Chair of the U.S. Federal Reserve, will soon be delivering a speech which could serve as a catalyst for Bitcoin's price. CEO of Pershing Square Capital Management, Bill Ackman, indicated that the Federal Reserve might have to lower rates sooner than anticipated, which could further impact the crypto market.
Bitcoin managed to maintain its trajectory above $38,000 on November 29, however, experts cautioned about potential market corrections. Data indicates that Bitcoin is consistently moving towards reaching new highs for the last 18 months. Despite matching current peaks, the leading cryptocurrency maintained its momentum, even as predictions for futures markets hit $39,000. Trading experts raised concerns about the excitement in the derivatives market as large-scale traders could leave later long positions stranded at the top.
Keith Alan, co-founder of Material Indicators, a monitoring platform, advised traders to be cautious about potential market manipulations. He warned about the market activity at $38k and suggested that market movements could be triggered by big traders, not by small investors. Alan also pointed out that the upcoming speech by Jerome Powell, Chair of the U.S. Federal Reserve, on December 1 could potentially influence Bitcoin's price and possibly bring it closer to the $40,000 mark.
Alan added that big traders are closely observing key levels for potential sell-offs and will continue doing so until they reach the desired levels. He also noted that Powell's speech could boost Bitcoin prices but investors need to be prepared for local lows.
At this point, many believe that there is potential for more short-term gains. Market analyst, Skew, noted that the only thing missing for a breakout towards $40,000 is volume.
Before Powell's speech, significant U.S. macroeconomic data is set to be released, which will have additional impact on the Federal Reserve's policy. Each data like Q3 GDP and the Personal Consumption Expenditure Index for October will be separately released on November 29 and 30 respectively.
Previously, the rates of inflation decreasing more quickly than expected led markets to believe that there would be no more hikes to the interest rate at the December meeting of the Federal Open Market Committee (FOMC).
In a recent interview, Bill Ackman, CEO of Pershing Square Capital Management, predicted that the Federal Reserve will have to decrease rates sooner than expected. He cautioned that failure to cut rates soon could lead to a hard landing for the US economy as inflation cools off. He suggested this might occur as early as the first quarter of next year.
It’s important to note that every investment and trading move carries some risk, so it's recommended that potential investors conduct their own research before investing.
Published At
11/29/2023 9:58:26 AM
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