Bitcoin soared past the $70,000 mark on the last trading day of March, propelled by a wave of buying pressure. This milestone is particularly noteworthy as it marks the end of the first quarter of the year, with the cryptocurrency hitting this price point after hovering around $69,000 over the preceding weekend.
Impact of Federal Reserve Chair’s Remarks
Jerome Powell, the Chairman of the Federal Reserve, influenced the market with his recent comments, resulting in a near $1,000 increase in Bitcoin’s value. Speaking in California, Powell expressed a cautious yet optimistic view on inflation and economic conditions, indicating a reluctance to quickly reduce interest rates – a decision affecting volatile assets like cryptocurrencies.
Market expectations for a rate cut took shape as the FedWatch tool by CME Group showed a 61% probability of a 0.25% cut at the next FOMC meeting, with June being the anticipated time for potential rate adjustments.
Technical Considerations and Analyst Insights
Technical analysis by experts suggests that the $69,000 level is crucial for Bitcoin’s trajectory. A close above could set a new record closing price. Rekt Capital, a renowned trader and analyst, posits that Bitcoin will likely see continued fluctuation until a weekly close above $69,000, which would signal an impending breakout. Any other movement would be seen as mere consolidation.
Additionally, the positive sentiment is bolstered by encouraging on-chain data. Trader Kevin Svenson pointed to a promising trend indicated by the MACD oscillator, suggesting that a crossover event on this indicator might align with a push beyond Bitcoin’s all-time high near $74,000.