Bitcoin jumps above $23,000, buoyed by Fed rate hike and dollar weakness

Bitcoin and cryptoassets in general led an interesting rally, driven by the increased appetite for risk following the US Federal Reserve (Fed) rate hike of 75 basis points and a weakening of the dollar index. The digital currency par excellence rises above $23,000 and experts are wondering whether the momentum will last long enough to lift its price to $24,000. Resistance at $25,000 remains on the horizon as the level to beat. Ethereum rises above $1,600 and the total capitalization remains above $1 trillion.

DeFi tokens also responded strongly, with Aave establishing its price above the $92 mark (up nearly 40% in the month of June) and Uniswap up 21%.

The world's largest cryptocurrency has been trading in a range between $20,000 and just over $24,000 since mid-June and "Bitcoin has been under pressure due to Fed monetary policy, and as the Fed is raising interest rates," commented Naeem Aslam, head of analytics at Avatrade. "However, the price action now shows that it is the strength or weakness of the dollar that matters most for Bitcoin prices," he noted.

"We've seen the dollar index come off its high and now we're seeing Bitcoin prices rise as well. It will be interesting to see if the relationship holds, as Bitcoin´s price is still not far from its critical $20,000 support," he stated.

As of today, BTC and Ethereum prices are leaving rallies, "but the main resistance that will clear the threat of any further downside moves is if BTC crosses above the $30,000 price mark and ETH shoots up to $2,000," Aslam commented.

"The focus will now turn to any economic data that may conflict with the Fed's objectives. The central bank not only has to be willing to seriously damage growth prospects in the states, but also to accept the reality of a looming recession and a strained labor market," they stated from GlobalBlock.