• The article discusses the potential effects of an expected 25-basis point rate hike by the Federal Open Market Committee on the price of Bitcoin.
• It also explores economic concerns and recession risks, as well as the potential for a $30K BTC price in February.
• Finally, it outlines remarks from Elon Musk and Treasury Secretary Janet Yellen regarding the risk of a deep recession in the US economy.
Bitcoin (BTC) Price Can Hit $30K in February If This Happens
Interest Rate Hike Expected
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