The world’s largest cryptocurrency by market capitalization looks to have consolidated above the $23,000 resistance zone, on the day after Jerome Powell’s new interest rate raise report.
Following one of the most profitable months in recent years, Bitcoin looked like it would “peak” at that margin. The asset reached $23,000 on January 21st and spent eleven days testing that zone, with no success.
On February 2, the United States Federal Reserve Chairman Jerome Powell announced yet another interest raise in the U.S. economy. What might seem like bad news at first for the cryptocurrency market, turned out to be a different story.
With the FED raising interests by “only” 25 basis points (0.25%), risky assets like crypto and gold saw that as indications that the country might be about to “peak” its interest rates — which are already at a record high.
And given that what goes up can only go down, that sentiment was enough to consolidate bitcoin above $23,000 for the time being.
The asset is currently trading at $23,595 – but reached as far as $24,083 on the day prior. What’s perhaps more important is the fact that BTC is trading above the $23,000 zone for three days straight. The last time the market-leading crypto traded above that zone for that timespan was over six months ago on August 10, 2022.