Bitcoin taps $24,000 for the first time since August 2022
The bear narrative takes a hit as Bitcoin records a 24 week high, despite ongoing macro uncertainty.
Bitcoin reached $24,260 during the morning of February 02 (UTC) – marking a 24-week high.
Similarly, the total crypto market cap touched $1,098.4 billion, a 24-week high.
Approximately five hours earlier, the Federal Open Market Committee (FOMC) meeting concluded, announcing a 25 basis point rate hike in line with market expectations.
Expectations are that the next FOMC meeting, scheduled for March 22, will conclude with another 25 basis point hike, leading to a pause in the schedule, thus stabilizing the cost of borrowing and potentially signaling the start of a pivot.
However, per the FOMC statement, the Committee will continue monitoring information and act accordingly to meet its goals, primarily a 2% inflation rate.
“The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals.”
The Bitcoin narrative has flipped.
In response to the expected rate hike, Bitcoin moved higher to record a 46% year-to-date gain.
Since topping out at $24,200, a shooting star candle has formed on the daily chart, taking away most of today’s gains. This potentially signals a downside move in the near term.
Nonetheless, aside from short-term fluctuations in price, the overall narrative around cryptocurrencies and risk-on assets, in general, has flipped, despite ongoing macro uncertainty.
The Fear and Greed Index currently reads 60 – indicating greed in investor sentiment. Four weeks prior, the index was at 26, hovering just above extreme fear.
According to Coinglass, crypto shorters were liquidated to the tune of $133.35 million over the last 24 hours. The single largest liquation was a Bybit Bitcoin shorter, which lost $1.69 million in the trade.