Breaking News
Close
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Bitcoin Advances Along With U.S. Futures Ahead of Fed Meeting

CryptocurrencyJan 26, 2022 11:04
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

(Bloomberg) -- Bitcoin kept regaining ground on Wednesday, mirroring an advance in U.S. equity futures ahead of a pivotal Federal Reserve decision that will shape expectations for monetary tightening. 

The world’s largest cryptocurrency by market value advanced close to $38,000 at 2 p.m. in Hong Kong, its highest level since Jan 21, when a selloff in virtual coins and other risky assets accelerated sharply. 

Bitcoin is recovering from a swoon that saw it dip below $33,000 on Monday, more than 50% off its November peak, prompting some analysts to point to $30,000 as a key support level. That’s a threshold Bitcoin hasn’t breached since July. 

Crypto’s correlation with equities strengthened in recent weeks as investors reacted to the prospect of tightening U.S. monetary policy by dumping high-priced tech stocks and digital tokens alike. Bitcoin’s moves in tandem with the Nasdaq 100 and the S&P 500 reached an all-time high this month, buoying confidence that one of the world’s more volatile major assets could become more predictable in future.

“Markets may have already priced in rate hikes,” Fadi Aboualfa, head of research at Copper co., said in an email Wednesday. “With the latest market selloff, I would expect that the Fed softens its tone as to stem any further panic. Bitcoin will follow the general market sentiment at this point.”

The Fed is due to finish its two-day meeting on Wednesday, with a policy decision from Chair Jerome Powell shortly afterwards. Bloomberg Economist Anna Wong expects the committee to keep rates steady and maintain the current pace of tapering, while telegraphing a rate hike for March.

“The overall sentiment in crypto is let’s try and settle in a range and do short term trading or find dislocations,” said Todd Morakis, co-founder of digital-finance product and service provider JST Capital, in an email Wednesday. “There are some bargain hunters here, but most of the people have been waiting for a time to invest in crypto and will continue to buy quality coins as the market moves down.” 

©2022 Bloomberg L.P.

 

Bitcoin Advances Along With U.S. Futures Ahead of Fed Meeting
 

Related Articles

Crash in Stablecoins: Tether Loses $7 Billion
Crash in Stablecoins: Tether Loses $7 Billion By Investing.com - May 18, 2022

By Laura Sanchez Investing.com - Investors have withdrawn more than $7 billion from Tether since it briefly fell out of parity with the dollar, raising fresh doubts about the...

Weekly Comic: Terra Infirma and Untethered Tethers
Weekly Comic: Terra Infirma and Untethered Tethers By Investing.com - May 17, 2022

By Geoffrey Smith Investing.com -- The crypto world has survived a scary week, but the danger isn’t over. The seemingly unstoppable momentum of the last two years has gone,...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
DOWNLOAD APPApp store
Investing.com
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
or
Sign up with Email