This January was the best for Bitcoin’s profitability in the last ten years, since the price of BTC has risen by more than 40 percent since the beginning of 2023. At the same time, in a couple of weeks the market smoothly transitioned from a state of panic to uncertainty and greed, against the backdrop of which many expect a continuation of the local bullrun. But among traders there are also fears of an imminent correction in the value of Bitcoin.

On January 30, the Bitcoin price reached a new local high of $23,950 – a record for the last six months. At the same time, the main cryptocurrency has not yet managed to gain a foothold above 24 thousand dollars, because after reaching a new height, the value of the cryptocurrency has adjusted. This morning the BTC rate is at $23 thousand.

Now all the discussions among cryptocurrency lovers are concentrated around the upcoming decision to raise the US Federal Reserve rate at the meeting of the Federal Open Market Committee (FOMC) on February 1. This event will lead to increased volatility, and changes in cryptocurrency prices will depend on new announcements in the policy of the Federal Reserve System.

In December, the rate was raised by 50 basis points, although before that it had been raised by 75 basis points since the summer of 2022. A possible increase in the rate by 25 basis points does not mean the end of economic problems and problems with inflation, because the consequences of a sharp rate increase the day before are yet to manifest themselves. However, such a change in trend in any case may signal the passing of the peak of difficulties in the economy and the authorities’ readiness to cope with them in the future.