TLDR
- The Federal Reserve maintained interest rates at 5.25%-5.5% in its recent meeting, signaling a cautiously optimistic economic outlook amid 3.3% inflation in May.
- Despite the Fed’s hawkish stance, pseudonymous analyst CryptoCon predicts Bitcoin will surge to $91,539, almost 25% above its all-time high, before reaching the cycle’s peak of $123,832.
- The crypto market experienced a $200 million liquidation spree following the FOMC’s decision, with Bitcoin and Ethereum reversing previous gains.
- Cardano founder Charles Hoskinson hinted at a potential partnership between the protocol and Elon Musk, expressing disappointment in Musk’s lack of response to collaboration attempts.
- Circle expanded its Web3 services by integrating Solana, while MetaMask introduced a pooled Ethereum staking service and plans to integrate Bitcoin functionality soon.
The crypto market faced a tumultuous 24 hours as the U.S. Federal Reserve announced its decision to maintain interest rates at 5.25%-5.5% during its recent meeting on June 12, 2024.
The central bank’s cautiously optimistic stance, citing stable inflation at 3.3% in May and economic strength, sent ripples through the cryptocurrency market, leading to a $200 million liquidation spree.
Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization, struggled amid the market volatility, reversing gains made prior to the Fed’s announcement.
However, despite the current market conditions, pseudonymous technical analyst CryptoCon remains bullish on Bitcoin’s future prospects.
Using the “Magic Bands” model, which predicts future prices based on previous cycle peaks and bottoms, CryptoCon forecasts that Bitcoin will surge to $91,539, nearly 25% above its all-time high, before eventually reaching the cycle’s peak of $123,832.
$91,539 target left untouched and unchanged for #Bitcoin.
Taking some time to reach it at Level 3 of the Magic bands but it's the next step.
All in due time… pic.twitter.com/Pwimj05ZQb
— CryptoCon (@CryptoCon_) June 12, 2024
The Fed’s decision to hold rates steady comes as a surprise to some, as the central bank had previously indicated plans for three rate cuts in 2024.
However, Chairman Jerome Powell noted that the Fed now anticipates minimal rate cuts, with a potential 25 basis point reduction by the end of the year and further cuts in 2025 to support inflation targets.
