Bitcoin Holds 10% Gains Ahead of Key Fed Rate Hike Comments

Bitcoin (bitcoin) maintained fresh upside on Tuesday after a stock market recovery pushed the largest cryptocurrency above $37,500.

Fed could spark fresh volatility

data from Cointelegraph Market Pro and Transaction view Shows that BTC/USD traded above $36,000 on Tuesday, with the largest 24-hour gain totaling 14% Monday floor.

Bitcoin’s Correlation with stocks Still in focus ahead of the fresh opening on Wall Street and ahead of the Fed’s key message on interest rates.

The Federal Open Market Committee (FOMC) of the Federal Reserve is scheduled to meet on Wednesday, and any news on interest rates could have an immediate impact on both traditional and crypto markets.

“Tomorrow’s FOMC meeting could mean we’re going to see a lot of volatility this week,” Cointelegraph contributor Michaël van de Poppe predict.

The rate hike plan is a follow-up to the Fed’s tapering of asset purchases, and Bitcoin sentiment took an early hit as the end of “easy” liquidity looms.

However, asset purchases should end in March, and the Fed said it shouldn’t raise rates until then.

Mike McGlone, chief commodities strategist at Bloomberg Intelligence, said: “After 2021 when the asset was the poster child for speculative hyperinflation, the price reversion of cryptocurrencies may spread in 2022, but Bitcoin will be one step ahead,” Summarize Hopeful for the future of BTC.

“The correlation is going one-to-one.”

Earlier this month, McGlone said Bitcoin could rebound stronger Once they see a long overdue correction of up to 20%, the stock price will be higher than the stock. Now, he added, altcoins are likely not to make a solid comeback like they did before.

Major Altcoins Disappear Early in Autumn

On the topic of altcoins, these are still doing well on the day, with Ethereum (Ethereum) to match Bitcoin’s rise.

related: ‘Stop panic selling’ – Bitcoin whales back up BTC as exchange balances drop

At the time of writing, ETH/USD is up 7.3% to trade at $2,420 after hitting its lowest since mid-July at $2,160.

Other large altcoins have also seen a V-shaped recovery, including Binance Coin (BNB) and Solana (Sol).

“The good part is that we are getting closer to the next impulsive rally in altcoins as most of them have fully retraced,” Van de Poppe debate before the meeting.