BTC Markets Rally as Fed Holds Rates

Cryptocurrency markets are rallying as the Fed holds rates, but growth forecasts dip and inflation expectations rise.

Cryptocurrency markets are showing strength today as the Fed keeps rates unchanged, but growth forecasts are trimmed and inflation outlook worsens.

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Notable Statistics:

* The Fed now projects modest economic growth this year, slashing the prior forecast.

* Despite a slight rise in 2024, the projections are still bleak compared to last year's predictions.

* Consumer Price Index (CPI) inflation is expected to be sticky, remaining elevated this year.

* Core PCE Price Index, the Fed's preferred inflation measure, is now seen higher for 2023.

* Economists polled by Dow Jones had anticipated a slight reduction in the interest rate projections.

Notable Developments:

* The Fed signals a pause in the aggressive rate cuts that began last year.

* Several officials still see the possibility of rate increases later in 2023.

* The central bank also lowered its projections for 2024.

* Growth forecasts have been slashed for both this year and next.

* Inflation outlook remains pessimistic, with CPI and PCE inflation seen higher than in the prior projections.

Top Gainers (24 Hour)

Trader Notes:

Crypto trader Blockchainedbb points out a large sell order at $108,000, which will need to be broken by fresh buy orders. She also notes that historically, market peaks occur six months after the election, and Trump may prefer a bull run closer to the election. Given these factors, a run to $108,000 could be a bull trap.

Crypto trader Astronomer declares "we have arrived" as the FOMC meeting goes live, adding that the bottom is likely in. He emphasizes positioning before the meeting and notes that his trade is already up $5,000.

Another trader, Nebraskangooner, sees $86,250 as the key level to close above for a bullish breakout.

#Bitcoin Either the orange squiggle is in play here or we break/close above $86,250 and move to bull scenario just in time for gooner vacation.Let's see what happens.https://t.co/P3zbCdTi14

— Nebraskangooner (@Nebraskangooner) June 14, 2023

Michael van de Poppe observed that there is no breakout yet but sees strong build-up. He expects Bitcoin to rally to $90,000 within 1-2 weeks if it stays above $81,500.

Read Next: Fed Keeps Rates Unchanged, But Growth Forecasts Are Trimmed And Inflation Outlook Worsens