- The Bitcoin market has rallied a bit during the course of the trading session on Wednesday, but as you can see, we have given back quite a bit of momentum at this point.
- It's not a huge surprise because the Federal Reserve had a reasonably hockey statement.
- Most of the people that are surprised are going to be retail traders that don't understand that Bitcoin is now a Wall Street asset.
It doesn't matter what you think it is, the reality is that interest rate policy will have a major influence. So, what lifts Bitcoin at this point? I think that's going to have more to do with US government policy. Again, I know it's supposed to be decentralized, but it's very much not decentralized in the sense that what's going to move it is adoption. How does it get adopted?
Top Regulated Brokers
Well, you need the US government to make it easier for people to use it as far as regulations are concerned. That's actually been the play for most of the last, say year and a half or so, when our initial move higher was based on the ETF, and then we had another move higher based on the election of Donald Trump and a pro crypto administration. The problem is they haven't done anything yet, so I think that's what the market's waiting for.
Buying Opportunities
Short-term pullbacks should continue to be buying opportunities, and the $100,000 level should continue to matter. Underneath there you have the 50-day EMA, and then you have $90,000 underneath there, where I think you definitely have quite a few people waiting to add to their position. This to me looks like accumulation. I don't think Bitcoin's going anywhere. I just don't think it's the same asset it was three years ago. So as a retail trader, you need to learn about interest rates, because that will have an effect on this market. That being said, I remain positive.
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