Bitcoin reclaimed the $23,000 mark on Feb. 1, 2023. Now, in the wake of the upcoming FOMC meeting on Monday, Wall Street remains in an upbeat mood ahead of the development. If Dow Jones resumes its upward streak ahead of the meet, the ripple effect could spell good news for the cryptocurrency markets as well.
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Could Bitcoin Reach $30,000 in February 2023?
The outcome of the Federal Reserve meeting on Monday could dictate Bitcoin’s direction in the indices. Mark Gibson, an associate professor of economics at Washington State University told Yahoo that the markets could rally if the Feds raise interest rates by 25 BPS.
“We have seen some progress in terms of inflation coming down. So the thinking is that the Fed might now start to ease off its rate hikes. So that’s why the market is thinking that 25 basis points are more likely at this meeting,” he said.
Joining the bandwagon, pseudonymous cryptocurrency analyst Altcoin Sherpa predicted that Bitcoin could reach $30,000 in the coming weeks. The analyst believes that a 25 BPS raise could be accepted by the markets leading to another rally in February.
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“BTC: The longer that this hangs around this area, the more bullish I am. I think that it’s quite likely that we see a gap fill up to 30k eventually,” he predicted.
Nonetheless, Prof Gibson warned that if the Feds throw a surprise of more than 25 BPS, the markets could react strongly. “If the markets are expecting a 25 basis point hike and it turns out to be a 50 basis point hike, that would be somewhat of a surprise. So the markets would react negatively to that,” he said.
In conclusion, Bitcoin reaching the $30,000 mark now solely depends on how the markets react to the FOMC meeting.
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At press time, Bitcoin was trading at $23,003 and is up 1% in the 24 hours day trade. BTC is down 66.6% from its all-time high of $69,044, which it reached in November 2021.