Bitcoin

Impact

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<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/fed-holds-rates-steady-bitcoin-rises" rel="noopener noreferrer nofollow">Fed Holds Rates Steady, Bitcoin Rises</a><br></p>
<p style="text-align: justify">On May 2nd, the <a href="https://en.bitcoinhaber.net/charting-the-next-moves-for-bitcoin-and-crypto-market-dynamics" rel="noopener noreferrer nofollow">Bitcoin</a> market experienced a notable surge in value following the Federal Reserve’s decision to maintain current interest rates at 5.25-5.50%. This decision came after the release of the Federal Open Market Committee (FOMC) minutes on May 1st, which also indicated a slowing in the reduction of the Fed’s balance sheet – a move from $60 billion to $25 billion monthly reductions starting June.</p>
<h2 style="text-align: justify" id="impact-of-fed-s-decision-on-bitcoin">Impact of Fed’s Decision on Bitcoin</h2>
<p style="text-align: justify">The Federal Reserve’s decisions influenced investor sentiment, causing a shift towards riskier assets including cryptocurrencies. Bitcoin’s value increased by over 3% within 24 hours of the announcement, peaking at $59,482. This rebound suggests a regained confidence among investors, potentially signaling an end to the recent downward trend.</p>
<h2 style="text-align: justify" id="recovery-signals-in-market-data">Recovery Signals in Market Data</h2>
<p style="text-align: justify">A deeper analysis into the blockchain data reveals encouraging signs for Bitcoin’s potential recovery. One significant metric, the Short-Term Holders Market Value to Realized Value (STH MVRV) ratio, stands at -6%. This indicator compares the recent transaction prices to their last moved prices, suggesting that markets tend to recover more robustly when the MVRV ratio is negative.</p>
<h3 style="text-align: justify" id="key-insights-for-investors">Key Insights for Investors</h3>
<ul style="text-align: justify">
 <li>Negative STH MVRV ratio typically precedes market recovery.</li>
 <li>An increase in transactions at a loss may signal market capitulation and a potential bottoming out.</li>
</ul>
<p style="text-align: justify">Furthermore, analysis by Santiment shows a higher ratio of Bitcoin transactions occurring at a loss compared to those in profit, which often correlates with market bottoms. This pattern suggests that the market might be nearing a phase of capitulation, where selling pressure exhausts, potentially leading to a turnaround in Bitcoin prices.</p>
<p style="text-align: justify">In conclusion, the Federal Reserve’s recent policy decisions have played a crucial role in stabilizing and slightly reversing the downward pressure on Bitcoin prices. Market data supports the possibility of a short-term recovery, backed by analysis of transaction patterns and investor behaviors. As the landscape evolves, stakeholders remain vigilant, watching for further signs of market direction.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/fed-holds-rates-steady-bitcoin-rises" rel="noopener noreferrer nofollow">Fed Holds Rates Steady, Bitcoin Rises</a></h5>

Fed Holds Rates Steady, Bitcoin Rises

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