Bitcoin rebounded to $43,000 as analysts warned of a pullback at the Fed’s upcoming meeting.

The post Bitcoin Rebounds to $43,000 as Analyst Warns of Pullback Amid Federal Reserve’s Upcoming Meeting appeared first on Coinpedia Fintech News.

Bitcoin rebounded on Tuesday and was trading above $43,000 on January 16, but has been trading consistently below investor expectations over the past few days. Traders were temporarily delighted as Bitcoin traded above $43,000 in the portfolio.

According to data from TradingView, Bitcoin struggled yesterday, witnessing ups and downs and was trading near $42,70.

After the Bitcoin ETF was approved, many short-term holders benefited from temporary holdings, which affected the price. There is also another important impact: long-term holders who keep their positions constant and do not compromise with Bitcoin’s price volatility.

Impact of Fed Meeting

The Federal Reserve is scheduled to meet in 15 days, possibly in late January. This meeting is all about deciding the direction of the central bank’s monetary policy. The CME FedWatch tool projects a 97.4% chance that the Fed’s funds rate will remain below its current target range of 5.25% to 5.50%.

“This potential reduction is viewed as a measure to support the economy, especially if inflation continues to be consistent with the Fed’s stability objectives. However, the timing and scale of interest rate cuts are very important. Early or excessive cuts could hasten inflation, while delayed or minimal cuts could hinder economic growth.”

One of the known Betfinix analysts predicted that the possibility of interest rate disruption in January could lead to a rise in Bitcoin prices.