Bitcoin (BTC) price is gradually establishing a correction bottom after dropping about 15 percent in the past five days. The flagship coin has gained around 2 percent in the past 24 hours to trade around $63k on Wednesday during the mid-London session. The heightened volatility that led to more than $550 million in crypto liquidation has significantly slowed down as more traders come to terms with today’s high-impact news.
Furthermore, institutional investors led by MicroStrategy and BlackRock have continued their Bitcoin acquisition programs in preparation for the crypto parabolic rally after the upcoming halving event.
Crypto Macroeconomic Outlook
On Tuesday, the Bank of Japan ended the deflationary period that lasted from 2007 by conducting the first rate hike to 0.1 percent. Consequently, the Japanese yen slipped above 150 against the U.S. dollar ahead of today’s FOMC statement.
The Federal Reserve is expected to hold its benchmark interest rate at 5.50 percent as the commission monitors the inflation data. Moreover, recent CPI data shows that the U.S. inflation is not entirely tamed to the desired 2 percent, thus delaying the expected interest rate cuts to at least June.
Also Read: BitMEX Listing XRP for Spot Trading Amidst The Looming Deadline in Ripple Vs SEC Lawsuits
What Next for Bitcoin and the Altcoin Market
Cryptocurrency traders who had taken refuge in the stablecoins market to protect liquidity from forced liquidations are expected to re-enter the market after today’s FOMC statements. With Bitcoin halving about 31 days from happening, the prior bullish outlook is likely to continue in the coming days amid heightened demand from institutional investors.
However, Bitcoin’s price will likely face significant resistance of around $74k and consolidate before continuing with the rally, giving the altcoin industry a free space to rally.
