On March 23, Bitcoin (BTC) climbed nearly 8% to reach nearly $29,000 on Bitstamp. Despite news about a fresh crackdown by the United States regulators, BTC/USD ignored the development. The upward trend continued even as stocks of cryptocurrency firm Coinbase fell 20% on Wall Street due to the Securities and Exchange Commission (SEC) targeting crypto firms. The crypto market remained bullish, with traders such as Crypto Ed seeing Bitcoin filling its retracement zone and anticipating the “next leg up.” Meanwhile, the reported arrest of Do Kwon, founder of blockchain firm Terraform Labs that was responsible for 2022 Terra implosion, failed to dampen the positive sentiment in the market.
The rebound of Bitcoin and other cryptocurrencies such as Litecoin (LTC) was not the only asset enjoying performance gains. U.S. stocks staged a comeback to offset post-Fed losses, with the S&P 500 rising 1.2% for the day. Gold, too, made impressive gains, hitting $195.15, up 3.1% from earlier in the day and returning closer to a $2,000 rematch.
While BTC/USD had dropped due to mixed signals from Federal Reserve Chair Jerome Powell over interest rate hikes, market commentators argued that it was an overreaction. Some saw the dip as an opportunity, and traders such as Kaleo remained bullish, predicting a “magnet” price target of $40,000. The positive momentum for cryptocurrencies and other risk assets is attributed to the “vacuum of relief” and “Echo bubble” for now, as Cointelegraph contributor Michaël van de Poppe explained. In the longer term, he agreed that $40,000 could be a target for BTC/USD.
In conclusion, despite negative developments, the crypto market remained upbeat with Bitcoin leading the way to a rebound, followed by other cryptocurrencies and traditional risk assets. The bullish trend is attributed to traders’ interpretation of mixed signals from the Fed regarding interest rate hikes and the future’s uncertainty. While the fluctuating market performance comes with risks, some traders remain bullish, projecting their expected magnet target price for Bitcoin.