Bitcoin hits $37.5K, stocks recoup losses ahead of Wednesday’s FOMC statement

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Bitcoin hits $37.5K, stocks recoup losses ahead of Wednesday’s FOMC statement

BTC and stocks bounced back from Monday’s onslaught as analysts speculate that the Fed’s upcoming rate hikes are beginning to be priced into the Bitcoin’s price action.

Bitcoin hits $37.5K, stocks recoup losses ahead of Wednesday’s FOMC statement

The dominant sentiment of doom and gloom in the crypto market shifted toward hope on Jan. 25 after the price of Bitcoin (BTC) climbed to $37,500 briefly as stock markets staged a midday rally that recovered most of the losses from Jan. 24.

Even with Jan. 25’s recovery, global markets remain in a state of flux, primarily due to uncertainty over the U.S. Federal Reserve’s plan to raise interest rates in the coming months, with the latest signal indicating that the first rate hike will come in March.

Data from Cointelegraph Markets Pro and TradingView shows that Bitcoin bulls reclaimed the $36,000 level early on Jan. 25 and managed to claw their way above $37,500 before a closing-bell pullback in equities markets weighed on BTC price. 

Bitcoin hits $37.5K, stocks recoup losses ahead of Wednesday’s FOMC statement

BTC/USDT 1-day chart. Source: TradingView

Here’s what several analysts are saying about this latest move for Bitcoin and whether it’s the start of a sustainable rally or a bull trap that is destined to push the price back into the low $30,000s.

$34,000 is a crucial level to hold

The significance of the recent price bounce off of $34,000 was addressed by on-chain data firm Whalemap, who posted the following chart highlighting the bounce off of the “whale” trendline.

Bitcoin realized price by address. Source: Whalemap

Whalemap said,

The overall cryptocurrency market cap now stands at $1.667 trillion and Bitcoin’s dominance rate is 42%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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