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<p>The post <a rel="noopener noreferrer nofollow" href="https://coinpedia.org/price-analysis/why-is-the-crypto-market-up-today-3/">Why is the Crypto Market Up Today?</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://coinpedia.org">Coinpedia Fintech News</a></p>
<p>In a surprising turn of events, the cryptocurrency market is experiencing a significant upswing today, with Bitcoin’s current value standing at an impressive $34,628. This surge in value follows a pivotal moment in the financial industry, as the Federal Open Market Committee (FOMC) recently concluded its second-to-last meeting of the year, opting to maintain a steady stance on interest rates.</p>
<h3 class="wp-block-heading" id="strong-the-fed-s-role-in-the-crypto-market-strong"><strong>The Fed’s Role in the Crypto Market</strong></h3>
<p>Over the past year, the United States has grappled with skyrocketing inflation rates, reaching a staggering 9.1% in June 2022. To combat this issue, the Federal Reserve took a bold approach by implementing a series of interest rate hikes. These aggressive measures successfully brought the Federal Funds Rate to a range between 5.25% and 5.5%—a level not seen since 2001. This assertive strategy has proven effective, as inflation has slowed to a more manageable 3.7%.</p>
<h3 class="wp-block-heading" id="strong-anticipation-for-the-next-financial-report-strong"><strong>Anticipation for the Next Financial Report</strong></h3>
<p>The next critical event on the horizon for the financial markets is the Bureau of Labor Statistics’ inflation report, scheduled for release on November 14. A further decrease in inflation could trigger a wave of investments into riskier assets as investors speculate on potential interest rate cuts in upcoming FOMC decisions. Such a scenario could boost both equity and bond markets, with bonds experiencing lower yields and a flattening of the yield curve.</p>
<h3 class="wp-block-heading" id="strong-crypto-s-connection-to-traditional-markets-strong"><strong>Crypto’s Connection to Traditional Markets</strong></h3>
<p>The cryptocurrency market is intricately connected to these broader financial movements, and Bitcoin is no exception. Its value is expected to mirror the trends seen in traditional markets.</p>
<h3 class="wp-block-heading" id="strong-the-etf-buzz-strong"><strong>The ETF Buzz</strong></h3>
<p>Adding an extra layer of excitement to the crypto space is the anticipated approval of the first U.S.-based Bitcoin spot ETF, predicted by J.P. Morgan to occur before January 10. The rumors surrounding BlackRock’s ETF application have already given Bitcoin a significant boost, pushing its value back to the $35,000 mark.</p>
<h3 class="wp-block-heading" id="strong-microstrategy-s-success-with-bitcoin-strong"><strong>MicroStrategy’s Success with Bitcoin</strong></h3>
<p>Business intelligence giant MicroStrategy is riding the wave of optimism, boasting a paper gain of $900 million on its vast Bitcoin holdings. Since the third quarter, the company has been actively bolstering its cryptocurrency holdings, accumulating 6,067 Bitcoin, including an additional 155 in October alone.</p>
<h2 class="wp-block-heading" id="h-navigating-the-current-market"><strong>Navigating the Current Market</strong></h2>
<p>Despite the current optimism, the market remains in a state of flux. The Relative Strength Index (RSI) indicates an overbought situation, suggesting that further consolidation may occur in the coming days. Bitcoin’s critical price levels now stand at $35,800 on the upper end and $33,000 on the lower end.</p>
<p>A drop below the support level could lead to Bitcoin retracting to its 20-day exponential moving average of $32,000, potentially setting the stage for a showdown between the bulls and the bears. Conversely, a breakthrough above $35,800 could signal a resumption of Bitcoin’s upward trend, possibly propelling its value toward the coveted $40,000 milestone.</p>

Why is the Crypto Market Up Today?

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