Major cryptocurrencies are trading with slight gains on Wednesday. The Federal Reserve's decision to hold interest rates at the current level and China's move to boost liquidity in a bid to stimulate its economy may have contributed to the slight recovery in crypto prices.
However, an earlier report from Bloomberg suggests that the crypto market may be nearing a peak, according to some technical analysts.
Despite the recent rally in Bitcoin, which saw it soar from $15,000 post-FTX to $110,000, interest rates have remained at 4.25%-4.5% throughout, according to crypto trader McKenna.
This, he said, indicates that the rally is not driven by rates.
Instead, he attributes the move to structural adoption, especially by institutions, and Bitcoin's increasing role as a non-sovereign store of value and hedge against capital controls.
The parabolic trend, McKenna notes, reflects a long-term shift in global perception rather than temporary macro factors.
This long-term bullishness is also echoed by another trader, Inmortal, who notes that after long periods of vertical accumulation, there's usually a "banger move" and we may still see more upside before a major deviation.
Another trader, ShardiB2, keeps it concise with a simple visual note showing Bitcoin's continued uptrend. "Bitcoin daily looks good — Above blue line, green dots."
Meanwhile, Crypto Seth advises traders to stay focused despite the expected short-term volatility following Jerome Powell's speech. "This BTC cycle isn't done, we've still got more to go," he reminds market participants to keep their eyes on the bigger picture.
