Bitcoin has revisited the $23,000 zone as investors chew on the FOMC meeting minutes released on Thursday. At the time of writing, the largest crypto by total market cap was trading slightly higher at $24,375. The total volume of BTC traded in the last 24 hours has slipped by more than 11%, while its market cap inched slightly higher.

Fundamentals

Bitcoin price has been facing numerous challenges in its journey, among them government regulations and cyclical market patterns. The past market year has seen Bitcoin crash from its all-time high of $69,000, making it tough for the digital asset to skyrocket.

Even so, with the recent growth in momentum, experts seem optimistic, predicting that the cryptocurrency could jump to new heights in the near future. Even with minor setbacks, such as the removal of crypto-related commercials from the NFL Super Bowl and rising US inflation, traders remain optimistic about BTC’s future.

Bitcoin is becoming more popular every day with its integration into many payment systems and adoption as the legal tender in two countries, El Salvador and the Central African Republic. As such, Bitcoin’s future is likely to be bullish.

The recently released minutes by the US Federal Reserve saw the BTC price decline below the important level of $25,000. The minutes from the meeting of the Federal Open Market Committee (FOMC) suggested both hawkish and dovish sentiments among the members. Notably, there was no mention of a pause in the further hiking of interest rates.

According to the minutes, most Fed officials agreed on the importance of further interest rate hikes which would allow for appropriate risk management. Further interest rate hikes could lead to a decrease in liquidity and a strengthening of the US dollar. As a result, this could negatively impact the price of Bitcoin and other digital assets.

On the flip side, higher interest rates lead to a sell-off in the stock market and could create demand for alternative investments like Bitcoin as investors search for higher-yielding assets.

Bitcoin Price Analysis

The FOMC meeting minutes left investors cautious, failing to attract enough buyers to yield a rally. On the daily chart, the Bitcoin price has managed to remain above the 50-day and 200-day exponential moving averages (EMAs). Its Relative Strength Index (RSI) has continued to move lower, pointing to a decline in buying pressure.

Therefore, the BTC price is likely to continue moving lower in the short term but above the important support of $22,000. However, a move past the key level of $25,000 will have bulls targeting a fresh year-to-date high.