Bitcoin (BTC) Price Can Hit $30K in February If This Happens
At present, the value of Bitcoin has stabilized at around $23,000. The interest rate and Bitcoin have a direct correlation, as evidenced by the fluctuations observed over the past year. If data suggests a 25-basis point softening, a short-term price increase can be expected.
The Federal Open Market Committee’s meeting concludes on February 1st and a 25-basis point rate hike is widely expected, pushing the federal funds rate from 4.5% to 4.75%.
When the Federal Reserve started hiking interest rates, Bitcoin’s value decreased, possibly due to nervous market participants selling their holdings.
Economic Concerns & Recession Risks
Bitcoin broke $23,000 as the previous month’s numbers leveled out, jumping 40% in 4 weeks. If interest rates continue to soften, another significant increase may be seen in February, potentially breaching the $30,000 support level. Currently, BTC is valued at $23,727 with a 7% increase in the past 24 hours.
The CME FedWatch Tool predicts a 99.9% chance of a 25-basis point interest rate hike by the Federal Reserve. Once a decision is made, Fed Chair Jerome Powell will give a speech outlining the Fed’s outlook. Although a 25 bps hike is widely expected, the possibility of a 50 bps hike still exists.
Elon Musk and Treasury Secretary Janet Yellen have voiced concerns about the risk of a deep recession in the US economy. Yellen worries that high-interest rates could trigger a recession, despite declining inflation and positive employment numbers.