Bitcoin Taps $40,000 Following US Fed Interest Rate Announcement

Updated:

Bitcoin (BTC) recorded a surge after a streak of downward momentum courtesy of the US Fed interest rate decision announcement. The benchmark cryptocurrency tapped the $40,000 top for the first time since April 28.

As expected, the broader market reacted similarly to the news, as the total market cap added 5.7% to its value yesterday.

The US Federal Reserve raised its benchmark rate by 0.50%, its highest single increase since 2000, as it worked towards curbing worsening inflation. That said, the central bank noted that it could raise rates by another 0.50% in its next meeting, dashing hopes of a more aggressive outlook.

US Federal Reserve Chairman Jerome Powell noted at the FOMC meeting that he sees the surging inflation and the negative effect it had on the country. He asserted that his organization was well-equipped with the necessary tools to combat the lingering economic crisis. Excerpts from the minutes read:

“Inflation is much too high. We understand the hardship it is causing, and we are moving expeditiously to bring it back down. We have both the tools we need and the resolve that it will take to restore price stability on behalf of American families and businesses.”

Key Bitcoin Levels to Watch — May 5

Just as projected in my last analysis, Bitcoin has responded favorably to the US Fed rate announcement, as the benchmark cryptocurrency bounced from the $37,700 area to the $40,000 top, a 5.8% jump. However, the cryptocurrency lacked the coordination to take the $40,000 barrier, prompting a correction to the mid-$39,000 area today.

BTCUSD – 4-Hour Chart on Gemini. Source: TradingView.

That said, BTC holds its place around the 4-hour 100 EMA, which could prop it up for a push above the $40,000 ceiling in the coming days. Regardless, the primary cryptocurrency needs a comfortable close above the $41,000 pivot ceiling to put the still-present bearish bias to rest. Unless we record this move above the pivot area in the coming days, the window for a bearish continuation remains present.

Meanwhile, my resistance levels are at $40,000, $41,000, and $42,000, and my key support levels are at $39,000, $38,000, and $37,000.

Total Market Capitalization: $1.79 trillion

Bitcoin Market Capitalization: $752.1 billion

Bitcoin Dominance: 41.9%

Market Rank: #1

 

You can purchase Lucky Block here. Buy LBlock

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9
Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.