Crypto traders caution against risky leverage strategies ahead of significant US economic policy changes. The Federal Reserve's decision to keep interest rates unchanged has impacted market sentiment.
Federal Reserve Statements and Market Reaction
The US Federal Reserve confirmed its intention to maintain interest rates within the 4.25% to 4.5% range. Bitcoin's price remained stable as the market had anticipated this decision. However, Fed Chair Jerome Powell's statement that the probability of a recession is 'not high,' despite economists' forecasts to the contrary, triggered a rally in cryptocurrency prices.
Expert Insights: Opinions from Michael van de Poppe and Others
Michael van de Poppe, founder of MN Trading Capital, emphasized that leveraging in such conditions is 'a guaranteed way to lose money.' According to CoinGlass data, approximately $188.77 million was liquidated in the last 12 hours, with $127.8 million being short positions.
Outlook for Bitcoin and the Crypto Market
Crypto analysts like BitcoinHyper and 21Shares strategist Matt Mena predict that the current rally may not last long. In the near term, Bitcoin is likely to stay in consolidation mode until a new catalyst emerges. However, the broader macroeconomic environment remains favorable for BTC's bullish growth in the long run.
The current situation in the crypto market requires caution from traders, especially considering the Federal Reserve's stance and potential implications for economic policy. Experts advise a measured approach to investing during such volatile periods.
