Bitcoin Prices Recover After The Fed Holds Interest Rates

Liputan6.com, Jakarta – Bitcoin price is showing signs of recovery. Bitcoin's performance began to recover on Thursday, April 2, 2024 after the Fed decided to maintain interest rates and reduced investors' hopes for a rate cut in 2024.

Federal Open Market Committee (FOMC) minutes released on May 1, the Fed said interest rates would remain at 5.25%–5.50%, adding greater confidence was needed in inflation moving sustainably toward 2% before lowering interest rates .

Nevertheless, the FOMC decision seems to have improved risk appetite and asset prices. The price of Bitcoin (BTC) is starting to bounce back, trading at the level of USD 59,000 or the equivalent of IDR 948.8 billion (assuming an exchange rate of IDR 16,084 per US dollar). This makes market players wonder whether the downtrend is over.

Tokocrypto trader, Fyqieh FAchrur explained, the recent price decline made Bitcoin reach its lowest level in two months, down 6.7% from its price during the halving.

“BTC's movement this time follows a similar trend after the Bitcoin halving in 2016. Where after the halving event in 2026, the Re-Accumulation Range experienced an additional correction of up to 17%, which lasted for three weeks,” said Fyqieh in a press release, Sunday (5 /5/2024).

Fyqieh said, in metrics on chain shows the probability of a market bounce in the short term, where the number of Bitcoin transactions that experience losses is compared to transactions that generate profits.

The ratio of BTC moved at a loss is higher than transactions moved at a profit.

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