Bitcoin Steady Despite ECB Rate Hike Announcement
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With the Fed recently indicating a possible rate hike in 2022, many spectators are eager to see how Bitcoin (BTC) and the rest of the crypto market would react to it.
In the recent FOMC meeting, which occurred yesterday, the Fed inspired the impression that they could raise interest rates sooner rather than later, following assertions that they would taper their bond-buying program to $30 billion per month. Fed Chair Jerome Powell told the New York Times that: “Economic developments and changes in the outlook warrant this evolution.”
While the Fed positions to implement a rate hike, the European Central Bank (ECB) has already implemented one. Head of FX strategy at Rabobank in London, Jane Foley, noted that:
“The ECB has surprised the market with the relatively contained size of APP monthly purchases going forward, though there are dovish elements in its statement with respect to the reinvestments of the PEPP and the fact that it could be resumed.”
That said, the BoE’s Monetary Policy Committee voted for a bank rate increase to 0.25%. Interestingly, Bitcoin barely reacted to the news today, as it remained steady around the $48.5K area at the time of the announcement. This sparked confidence in some analysts that the benchmark cryptocurrency could withstand the incoming storm from a Fed rate hike.
GlobalBlock analyst, Marcus Sotiriou, noted that: “Despite Bitcoin’s recent 39% correction, the number of addresses with a non-zero balance continues to break all-time highs.” Sotiriou added that: “This suggests institutional interest is prevalent at these prices and that whales are buying up Bitcoin supply during this correction.”
Key Bitcoin Levels to Watch — December 16
The benchmark cryptocurrency regained decent bullish traction earlier today after jumping to the $49.5K barrier. However, bears remained heavily present at that level and forced the price into a minor correction below the $48.5K support.
That said, a sustained bearish correction should meet an end at the $47K round figure, given the confluence of support (minor bullish trendline, 200 SMA, and support line) at that level.
Furthermore, a sustained break below the mini bullish trendline could expose BTC to a bearish wave to the $45K support.
Meanwhile, my resistance levels are at $49,500, $50,000, and $50,500, and my key support levels are at $48,000, $47,000, and $46,000.
Total Market Capitalization: $2.27 trillion
Bitcoin Market Capitalization: $927.1 trillion
Bitcoin Dominance: 40.9%
Market Rank: #1
