Will Bitcoin hit ,000 despite a 75 BPS rate hike by the Fed?

Will Bitcoin hit $25,000 despite a 75 BPS rate hike by the Fed?

the FBI increased interest rates by 75 basis points today to face rising inflation and an imminent recession. Despite the rate hike, the markets rose in the green with Bitcoin and Ethereum rising in double digits. Bitcoin crossed $23,000 while Ethereum crossed $1,600 and hit its weekly highs. The markets are still recovering and have yet to cool and show strength to withstand rate hikes. With BTC reaching $23,000 despite the rate hike, analysts have predicted it could climb to $25,000 next time before falling again.

The crypto markets today also regained the market cap of $1.1 trillion with an increase of almost 9%.

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Will Bitcoin hit $25,000? Here’s our opinion

Source: In Bitcoin We Trust

Bitcoin rose from $20,000 to $23,000 in just four days. Even Dow Jones rose nearly 450 points, despite the rate hikes that fueled crypto markets. However, in order for BTC to climb to $25,000, the markets need to stay in the green until the weekend. Therefore, BTC would need to stay strong for the next two to three days for it to rise above $25K.

Today’s double-digit rally could well be a bulltrap and markets could reverse in the coming days. Markets held up for nearly two days as the Feds increased 50 basis points last month, but then eventually moved south. In other words, the spike could be temporary as a price reversal could happen before the weekend.

Also read: What are the chances of Bitcoin falling to $0?

Therefore, it is advisable to proceed with caution and not go all-in, as the markets could undoubtedly slip again.

However, crypto analyst John Squire predicted that Bitcoin could hit $25,000 and then head south to wipe out the gains it generated this week. “We are experiencing a bullish trap leading experts to believe that BTC will remain in the green this weekend. It’s totally false. Bitcoin will hit $25K and then the curves are coming,” he said.

At the time of writing, Bitcoin was trading at $23,186 and is up 9.1% in 24-hour trading. BTC is down 66.4% from its all-time high of $69,044, which it reached in November last year.