Depending on whether the Fed completes its rate hikes by March, the significant association between Bitcoin and gold might signal the beginning of a price increase, according to data examined by CryptoSlate.
The forthcoming FOMC meeting is set to finish on March 22, with the majority of experts anticipating another 25 basis point increase. From there, it is anticipated that the Fed would maintain rates, signalling the end of the scheduled rate hikes.
Examining the Bitcoin price % change the day before, during, and after each 2022 FOMC meeting, thirteen of the twenty-four times resulted in a decline for the main cryptocurrency.
When the Fed initially started hiking interest rates, a poor Bitcoin performance may be attributed to market anxiety-induced selling pressure. However, as the market accepts the certainty of increased interest rates, a less negative response is anticipated throughout the course of the year.
The price of gold increased substantially. For instance, in late 2005, the price rose from $400/oz to $1,920/oz over a period of six and a half years.
Since February 2022, Bitcoin and gold prices have shown an 83% association, the greatest percentage in over a year.
If gold responds as it did in previous instances of the Fed’s rising timetable reaching its peak, and Bitcoin mirrors gold, Bitcoin’s price might see a large increase.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.