Bitcoin Technical Headwinds Ahead of FOMC: Higher For Longer?

• Powell’s Speech Points to „Higher for Longer“ Interest Rates
• Short-Term Bitcoin Holders Continue To Capitulate
• Technical Headwinds For Bitcoin Ahead Of FOMC Meeting

Powell’s Speech: Higher for Longer

Federal Reserve Chairman Jerome Powell recently gave a speech that indicated near-zero interest rates in the United States are likely to continue into the foreseeable future. This is bad news for many savers, but could be a boon for those looking to invest in risky assets like Bitcoin.

Short-Term Bitcoin Holders Continue To Capitulate

In response to Powell’s comments, short-term Bitcoin holders have been selling off their positions, as they expect lower returns on their investments if interest rates remain low. This indicates that there may be some short-term headwinds that could affect the price of Bitcoin heading into the FOMC meeting later this week.

US National Debt Nears $32 Trillion

At the same time, US national debt has reached record levels and is expected to soar even further over the next few years. The increasing debt burden could put additional downward pressure on the US dollar and further boost demand for alternative assets like gold and cryptocurrencies such as Bitcoin.

Tick Tock, Next Block: Bitcoin Difficulty Sees Positive Adjustment

On a more technical level, it appears that miners are increasingly confident about the future of Bitcoin, as evidenced by an increase in difficulty adjustments over recent months. This suggests that mining activity will remain robust going forward and should support prices in the long run.

Conclusion

The combination of higher debt levels, continuing low interest rates and positive technical indicators all point towards a continued strong performance of Bitcoin in the coming weeks and months. Investors should keep an eye out for any potential headwinds from upcoming FOMC meetings or regulatory changes before making any moves in either direction.

Kommentare sind geschlossen.