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The US Federal Reserve has re-energized some experts’ enthusiasm for Bitcoin
Earlier this week, signs of a steady Bitcoin (BTC) price rebound surfaced as investors turned away from the US dollar in response to weaker-than-expected economic data.
In further detail, Bitcoin’s slide to around $33,000 last week was welcomed with a solid purchasing attitude, pushing its per token rate to as high as $39,300 on Feb. 1. BTC’s price had dropped below $37,000 as of Thursday, although it was still up 13 percent from its local low.
Meanwhile, the US dollar index (DXY), which measures the strength of the greenback against a basket of major currencies, surged to 97.441 on Friday, its highest level since July 2020. However, on February 3, the index had recovered about 1.50 percent and was trading above 96.00.
Some market observers regarded the dollar’s continuing weakening as a hint that rate rise concerns were fading.
Lyn Alden, creator of Lyn Alden Investment Strategy, for example, tweeted that the Fed “hit a fever pitch this week in terms of generating more and more aggressive tightening scenarios,” stressing that the central bank may turn dovish once “economic deceleration/weak PMI data takes center stage.”
