Bitcoin (BTC) hit $39,000 for the first time since mid-2022 on Dec. 1 as the United States Federal Reserve boosted hopes of policy easing.
Powell: Calling end to hikes would be “premature”
Bitcoin bulls, already in a strong position, beat out resistance as Fed Chair Jerome Powell took to the stage at Spelman College in Atlanta, Georgia for a scheduled appearance.
“The FOMC is strongly committed to bringing inflation down to 2% over time and to keeping policy restrictive until we’re confident that inflation is on a path to that objective,” he said in prepared remarks.
“It would be premature to conclude with confidence that we have achieved a sufficiently resitrive stance, or to speculate on when policy might ease.”
While keeping his tone cautious, Powell appeared to boost risk asset sentiment with his comments on the current state of the U.S. economy and progress toward reducing inflation.
Reacting, financial commentary resource The Kobeissi Letter was among those with a more sober take on what the Fed might do in future.
“Their narrative has not changed since last year, but markets continue to call for a Fed pivot,” it wrote in part of a post on X (formerly Twitter.)
“As we have stated before, the Fed would rather spark a mild recession than risk a resurgence of inflation. This means that a long PAUSE is still likely.”
Bitcoin nonetheless took full advantage of the mood, contrasting with a flat reaction to the week’s earlier U.S. macro data prints.
As Cointelegraph reported, the next meeting of the Federal Open Market Committee, or FOMC, is due in mid-December, when any changes to interest rates will be announced. Per data from CME Group’s FedWatch Tool, as of Dec. 1, market expectations unilaterally favored a pause in hikes.
BTC price targets extend beyond $39,00
Turning to Bitcoin markets, popular trader Daan Crypto Trades revealed the size of sell-side liquidity involved in the brief trip to $39,000.
— Daan Crypto Trades (@DaanCrypto) December 1, 2023
Keith Alan, co-founder of trading resource Material Indicators, meanwhile uploaded a snapshot of BTC/USDT order book liquidity to X following Powell’s speech.
This showed $39,000 and $39,200 remaining as significant resistance overhead, while the nearest substantial buyer support lay at $38,000.
“I strongly believe that today we will finally close above $38K. A daily close above $38K is a powerful signal of a god candle,” fellow popular trader BitQuant forecast earlier on the day.
Daan Crypto Trades added that Bitcoin seemed to be “leaving its previous trading range for the time being,” while for Crypto Ed, founder of trading and training group CryptoTA, predicted upside taking Bitcoin to “at least” $39,200 next.
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