The Federal Reserve (Fed) gave a statement today, June 10th, 2020, that the interest rate would continue to stay close to zero until the end of 2022. The US Central Bank predicted that it will take years to get the job numbers down to the same levels as it was pre-corona virus. The Fed sees the US economy contracting by 6,5% and unemployment coming down to 9,3% in the near future.
The Bitcoin prices started to rise right after the Fed’s statement. In the last couple of hours, the Bitcoin prices have been fluctuating close to $10,000. The prices have still not broken through the key marker $10,000, which is considered a major psychological level for the currency. Bitcoin, the world’s largest by market value, reached $9,979.72 earlier in the day before quickly retreating to some hundred dollars lower in a couple of minutes. There is no surprise that the currency is retreating as investments and speculations in cryptocurrency are very risky. Bitcoin went up after the Fed’s statement, but it is still uncertain whether the Fed brought the currency up or whether other factors gave Bitcoin prices a bump.
If we look at some of today’s quotes from different analysts, Marouane Garçon, managing director of crypto-to-crypto derivatives platform Amulet, said “I think the Fed announcement is great news for Bitcoin, but it doesn’t move the needle.” Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, agreed in his statement that about today’s flirt at $10,000 as being “unrelated to the Fed announcement.” As we keep listening to well-known players in the field say about today’s news, Kiana Danial, CEO of Invest Diva, gave an exciting take on the Fed’s statement: “today’s volatility may have been derived from the USD selloff after the Fed statement.” “Since Bitcoin is traded versus the USD, a weak US dollar will push the BTC/USD higher,” she noted. She further pointed out that “if the USD sell-off continues, the Bitcoin bulls may finally find enough sentiment to break above the $10K resistance.”
It is important to keep in mind Danial’s other statements where she points out that buyers have failed to surpass the $10,000 level convincingly over the last several months, in spite of making several attempts. Have a look at our piece from yesterday where we look at the three last attempts of braking through $10,000 without any luck. DiPasquale had a great take on the situation: “If the price remains in the same pattern, it is likely that we will see a break above $10,000 soon, with $10,200 serving as a short-term resistance. On the downside, $9,500 is acting as a reliable support.” Let’s get ready and pay attention to where Bitcoin will go next. Just remember to only invest money that you can afford to lose, as nothing is certain in cryptocurrency investments and trading.