Bitcoin price hits $39K as Powell stirs bets Fed rate hikes are over

Bitcoin reaches levels not seen since May 2022 amid an excited market reaction to the latest Fed inflation commentary.

Bitcoin (BTC) hit $39,000 for the first time since mid-2022 on Dec.

BTC/USD 1-hour chart. Source: TradingView

Powell: Calling end to hikes would be "premature"

Data from Cointelegraph Markets Pro and TradingView confirmed a new 19-month BTC price high of $39,000 on Bitstamp.

Bitcoin bulls, already in a strong position, beat out resistance as Fed Chair Jerome Powell took to the stage at Spelman College in Atlanta, Georgia for a scheduled appearance.

“The FOMC is strongly committed to bringing inflation down to 2% over time and to keeping policy restrictive until we’re confident that inflation is on a path to that objective,” he said in prepared remarks.

“It would be premature to conclude with confidence that we have achieved a sufficiently resitrive stance, or to speculate on when policy might ease.”

While keeping his tone cautious, Powell appeared to boost risk asset sentiment with his comments on the current state of the U.S.

Reacting, financial commentary resource The Kobeissi Letter was among those with a more sober take on what the Fed might do in future.

“Their narrative has not changed since last year, but markets continue to call for a Fed pivot,” it wrote in part of a post on X (formerly Twitter.)

“As we have stated before, the Fed would rather spark a mild recession than risk a resurgence of inflation.

Bitcoin nonetheless took full advantage of the mood, contrasting with a flat reaction to the week’s earlier U.S. macro data prints.

As Cointelegraph reported, the next meeting of the Federal Open Market Committee, or FOMC, is due in mid-December, when any changes to interest rates will be announced. Per data from CME Group’s FedWatch Tool, as of Dec. 1, market expectations unilaterally favored a pause in hikes.

BTC price targets extend beyond $39,00

Turning to Bitcoin markets, popular trader Daan Crypto Trades revealed the size of sell-side liquidity involved in the brief trip to $39,000.

Related: ‘Buy the rumor, sell the news’ — Bitcoin ETF may spark TradFi sell-off

#Bitcoin That took literally 2 minutes ✅ https://t.co/JOwOVA3U4S pic.twitter.com/ii8CCoMchW

— Daan Crypto Trades (@DaanCrypto) December 1, 2023

Keith Alan, co-founder of trading resource Material Indicators, meanwhile uploadeda snapshot of BTC/USDT order book liquidity to X following Powell’s speech.

This showed $39,000 and $39,200 remaining as significant resistance overhead, while the nearest substantial buyer support lay at $38,000.

“I strongly believe that today we will finally close above $38K. A daily close above $38K is a powerful signal of a god candle,” fellow popular trader BitQuant forecastearlier on the day.

Daan Crypto Trades added that Bitcoin seemed to be "leaving its previous trading range for the time being," while for Crypto Ed, founder of trading and training group CryptoTA, predicted upside taking Bitcoin to "at least" $39,200 next.