Bitcoin To React To Highly Anticipated Fed Rate

A popular crypto analyst and strategist dropped a new prediction about Bitcoin these days. Check out what he had to say about the fate of the king coin.

Bitcoin (BTC) will behave in response to the Federal Reserve announcing a fresh round of rate hikes, according to the analyst.

Pseudonymous analyst Pentoshi said that he sees Bitcoin rallying with tech stocks once the markets digest the news coming from the Federal Open Market Committee (FOMC) meeting.

Check out what the analyst had to say:

“So many stocks at or around their March 2020 lows AFTER the Covid crash. Spotify, Netflix, Zoom, Paypal, and many more. Post FOMC rally for equities and BTC short term as many are at key pivot points looking to be setting up in my opinion.”

The Federal Reserve will probably raise interest rates by 50 basis points after the May 4th meeting in an effort to curb inflation, according to CNBC.

The online publication the Daily Hodl notes that the popular crypto trader Light agrees with Pentoshi’s prediction that BTC will likely surge after the FOMC meeting.

He said that this will probably happen because this announcement will be a buy-the-news event.

“Candlestick watchers, line drawers, and other similar cave dwellers will once again be baffled after thinking they are trading BTCUSD and finding out the truth. Think VIX comes off post-FOMC. Thin liquidity and options will do the rest. Sell the rumor buy the news, again…This is setting up again to be a buy the news event in almost any Fed outcome.”

Another popular crypto strategist and trader Pentoshi has recently explained that a local bottom is on the horizon for Bitcoin (BTC) along with the rest of the crypto markets – but there’s a catch.

“There goes NDX… which translates to the next leg down for BTC.”

Regarding the price of Bitcoin today, at the moment of writing this article, BTC is trading in the green and the king coin is priced at $38,923.