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Bitcoin ‘bear market rally continues’ after BTC price jumps to $23.4K

Bitcoin (BTC) consolidated higher into July 28 after United States monetary policy changes fueled optimism in risk assets.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Fed hike instils fresh crypto optimism

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD climbing to highs of $23,452 on Bitstamp overnight.

The pair had reacted strongly to the latest Federal Reserve key rate hike, despite this conforming to market predictions. Subsequent comments from Fed Chair Jerome Powell added to the breakout’s momentum.

“I think the reason this is providing some relief to the equity market is the Fed is acknowledging that there can be an impact on growth, to the economy, based on their policy,” Gargi Chaudhuri, head of asset management giant BlackRock’s iShares investment strategy Americas, told CNBC.

“They’re recognizing there are two sides of this – there’s a growth tradeoff to fight inflation. The recognition is something we heard today that we didn’t hear before.”

Crypto commentators had already predicted that the Fed would find itself stuck between two stools in the form of forty-year-high inflation and the risk of a recession arising from fighting it.

“Who’s outperforming here? Nasdaq & Crypto,” Alf, creator of the Macro Compass Newsletter, wrote in part of a Twitter summary of the week’s events.

“If the Fed isn’t gonna force tighter financial conditions on autopilot anymore, real yields will actually start declining again.”

Finally, what’s the bond market saying?

We priced away some hikes between now and December, and this is how we are left:

– 50 in Sep
– 25 in Nov
– 25 in Dec

DONE

– 50 bps of cuts in 2023

A higher likelihood that ”peak Fed hawkishness” is behind us.

12/ pic.twitter.com/HyvXvnBf6P

— Alf (@MacroAlf) July 27, 2022

He noted that forthcoming rate hikes were not being priced in as beating or even equalling the 75-basis-point July move, contributing to “a higher likelihood that ‘peak Fed hawkishness’ is behind us.”

Eyes on $23,500 daily close

When it comes to BTC price action, commentators were…

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