Bitcoin erases Fed losses as traders eye $40K BTC price target
2023.03.23 17:41
Bitcoin (BTC) returned to near $29,000 on March 23 as bulls ignored news of a fresh United States regulatory crackdown.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Bitcoin shrugs off Coinbase, Do Kwon arrest
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD gaining almost 8% versus its overnight lows to challenge nine-month highs on Bitstamp.
The pair kept the volatility coming as the dust settled on the prior day’s interest rate decision and associated commentary from the Federal Reserve.
Despite Fed Chair Jerome Powell giving mixed signals over how and if rate hikes would continue, crypto market commentators argued that the sudden drop that Bitcoin witnessed had been over-the-top.
“Make sure to remember the panic and calls for lower next time you get a dip during a HTF uptrend,” popular trader Crypto Chase wrote in part of Twitter analysis.
Among those now eyeing the continuation of the uptrend was Crypto Ed, who saw Bitcoin filling its retracement zone.
Next leg up should start pic.twitter.com/3spyz52ct0
— Ed_NL (@Crypto_Ed_NL) March 23, 2023
The mood even managed to stay positive despite news that U.S. regulator the Securities and Exchange Commission had begun targeting crypto firms, notably Coinbase, stocks of which fell 20% at the Wall Street open.
Related: Hindenburg Research reports Block short position, claiming fraud facilitation and inflated metrics
The reported arrest of Do Kwon, founder of blockchain firm Terraform Labs, responsible for the 2022 Terra implosion, likewise failed to dampen performance.
“You can try to fade it, but we’re just gonna keep sending from here,” fellow trader Kaleo added in the latest of his characteristically bullish BTC price takes, having reiterated that $40,000 was a “magnet” price target.
Risk assets return with a bang
Bitcoin and cryptocurrencies like Litecoin (LTC) were not the only assets enjoying a rebound on the day.
Related: US enforcement agencies are turning up the heat on crypto-related crime
U.S. stocks attempted to cancel out their own post-Fed losses, with the S&P 500 up 1.2% on the day at the time of writing.
Gold, meanwhile, hit $195.15, gaining an impressive 3.1% versus the daily lows before and edging closer to a $2,000 rematch.
XAU/USD 1-hour candle chart. Source: TradingView
“We’re still in the vacuum of relief, the ‘Echo’ bubble. The period where the potential process of pausing hikes remains to be bullish and there’s no clear recession, until reality kicks in,” Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, summarized.
Van de Poppe agreed that $40,000 was now a longer-term target for BTC/USD.
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