Bitcoin price eyes bullish target despite Fed Chair Jerome Powell expecting two more rate hikes in 2023

Bitcoin price has continued its upward trend, and it is now eyeing a bullish target of $32,500, previously seen in May 2022, despite the fact that Fed's Chair Jerome Powell predicted two more interest rate hikes before the end of the year in a speech on Thursday.

While risk assets are expected to lose their value in a macro environment such as this, Bitcoin price is eyeing a $32,500 target.

Also read: Bitcoin sustains above $30,000 even as Biden calls to eliminate crypto tax loopholes

Federal Reserve Chair maintains hawkish tone in June 29 speech 

In his speech on June 29, US Federal Reserve Chair Jerome Powell maintained his hawkish tone. Inflation is well above the central bank’s goal of 2%, and Powell stated that labor demand still substantially exceeds the supply of available workers. These factors contribute to the expectation of two more rate hikes before the end of 2023. 

"Inflation has moderated somewhat since the middle of last year. Nonetheless, inflation pressures continue to run high, and the process of getting inflation back down to 2 percent has a long way to go"

Powell said. 

The Federal Reserve is set to hold four more policy meetings in 2023, with the next one on July 25 - 26.

Typically, the likelihood of further interest rate hikes has a negative impact on risk asset prices. However, Bitcoin has continued its uptrend, riding the bullish catalysts like institutional investment and interest from traditional financial firms.

Bitcoin price sustains uptrend, BTC rallies towards $32,500 target 

Bitcoin price is currently in an uptrend that started at the beginning of 2023. BTC price is currently above the three long-term Exponential Moving Averages (EMAs) 10-, 50- and 200-day at $29,807, $27,946 and $25,792, respectively. 

BTC/USDT one-day price chart on Binance

Bitcoin has sustained its bullish momentum despite the shifting macroeconomic environment. The bullish target for BTC is $32,500. In May 2022, BTC hit the $32,629 level, but since then, the asset experienced a pullback.

The key support levels for Bitcoin price are $29,807, $27,728 and $25,261. These levels have acted as support for BTC price since March 2023, making them key to the asset’s uptrend and recovery from price correction.