- Bitcoin price is still stuck in a rangebound movement for the eleventh day with no directional bias in sight.
- Altcoins have seized the opportunity, rallying massively over the past few days.
- The US Federal Reserve's upcoming rate hikes could have an impact on BTC, albeit short-lived.
Bitcoin (BTC) price continues to move sideways for the eleventh day, confusing short-term traders. Despite the Exchange Traded Fund (ETF) mania, the big crypto continues to remain lull.
Read more: Why approving a Bitcoin ETF might unleash $18 billion in sell-pressure
Unexpectedly, altcoins seem to be enjoying the enhanced interest in crypto due to the ETF hype. Bitcoin Cash has risen a whopping 212% in 10 days, STORJ has climbed 67% in the last two weeks, and many other altcoins have also skyrocketed.
But will this altcoin mania continue? Unlikely, especially if Bitcoin price finds its footing and kickstarts a rally, irrespective of the direction.
Also read: Top 3 altcoins to buy for next alt season: PEPE, OP, BNB
Adding Fed’s decision to the mix
Last year proved that the United States Federal Reserve’s monetary policy decision does affect Bitcoin and the larger crypto markets. But this connection between the Fed’s decision, the stock market and the cryptocurrency market seems to have dried up.
However, worsening macroeconomic conditions and erosion of trust in the US banking system has clearly given Bitcoin the upper hand, knocking the aforementioned correlation down. As a result, Bitcoin price has returned year-to-date gains of nearly 85%.
But Fed Chairman Jerome Powell is hinting at two more rate hikes by the end of 2023. If Powell follows through on his commitments, the US Dollar could see a massive rally, causing risk-on assets like the stock markets or Bitcoin to take a hit.
Read more: Fed Chair Jerome Powell expects two more rate hikes in 2023
Will Bitcoin price tank because of the rate hikes?
The effects of these rate hikes on Bitcoin price are usually ephemeral or short-lived. In addition to the rate hikes, if the correlation between BTC and the stock market remains low, Bitcoin price will continue to move depending on supply and demand dynamics, aka capital flow.
From a big-picture perspective, Bitcoin price remains bullish and can scale to highs last seen in late 2021.
Read more: Three reasons why Bitcoin’s 2023 rally is just starting
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