Bitcoin's price rebounds above $43,000 as macro concerns temper some optimism
Bitcoin’s price rebounded above $43,000 on Tuesday, posting an increase of almost 2% in the past 24 hours.
The price of bitcoin has rallied back above the $43,000 mark with the volatile price action causing the liquidation of over $66 million in leveraged cryptocurrency positions.
The world's largest cryptocurrency by market capitalization increased by over 1.8% in the past 24 hours to $43,317 at 12:00 p.m. ET, according to The Block's Price Page .
The price action caused the liquidation of over $15 million in bitcoin leveraged positions, according to Coinglass data .
Bitcoin BTC +1.46% has rebounded on Tuesday, above the $43,000 mark. Image: The Block.
Macro conditions could reduce halving impact
While the hype that surrounded the approval of multiple spot bitcoin ETFs in January has subsiding, two significant plot points in the BTC narrative are poised to unfold in the coming months: the anticipated halving in April and the potential commencement of the Federal Reserve's rate-cutting cycle in May.
However, on analyst believes the impact of the halving could be dampened by tightening macro economic conditions. "The positive effect of the bitcoin halving might be postponed or leveled out by the pressure of high rates in financial markets," YouHodler Chief of Markets Ruslan Lienkha told The Block.
Lienkha added that, in comparison to the previous halving event, this time it will take place amid macroeconomic conditions that "may exert a different impact on the price."
Anticipated Fed rate cut delayed
On Sunday, Federal Reserve Chair Jerome Powell ruled out an earlier rate cut in 2024 in an interview with CBS' 60 Minutes.
"We’ve said that we want to be more confident that inflation is moving down to 2%,” Powell said in the interview. "I think it's not likely that this committee will reach that level of confidence in time for the March meeting, which is in seven weeks."
Lienkha added that although the market forecasts May rate cuts right now, "the date might be adjusted soon as the market sentiment changes very quickly driven by investors' emotions."
"It seems that capital inflow to risky assets will be limited and under pressure at least until the middle of this year and that is in a positive scenario," he added.
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