By Samuel Indyk
Investing.com – The price of remained below $ 40,000 on Thursday following the interest rate decision on Wednesday evening. The central bank put forward its expectations for the first rate hike by 2023, with an emphasis on its inflation language.
"Inflation has risen, largely reflecting temporary factors," the committee said, updating its guidance for PCE (the Fed's preferred method of price measurement) for the next three years.
The Fed was more restrictive than some expected, and the news lifted the US dollar and appeared to be capping the price of the world's largest cryptocurrency in the short term.
Bitcoin ETF delay
Another caveat on cryptocurrency prices for the time being was news that the US Securities and Exchange Commission (SEC) has again postponed its decision to approve the VanEck Bitcoin ETF by 45 days, the second time it has extended the review period on the VanEck application.
"In denying numerous Bitcoin ETF applications, the SEC has continually raised concerns about fraud and manipulation in the underlying Bitcoin spot market," said Nathan Geraci, president of the ETF store, in a recent interview with CoinDesk.
The introduction of a Bitcoin ETF would be another sign that cryptocurrencies are reaching the mainstream and opening up more opportunities for institutional investment.
World Bank snubs El Salvador
Another news that caught the attention of cryptocurrency traders on Thursday came from El Salvador, the country that recently passed the Bitcoin law that allows Bitcoin to be used as legal tender in the country.
The Central American state asked the World Bank for support in building the infrastructure to make this possible, but the World Bank rejected its request in part because of environmental concerns.
"Although the government has asked us for help with Bitcoin, the World Bank cannot support this in view of the environmental and transparency deficiencies," said a spokesman for the World Bank.
From a tech standpoint, a solid breakout and close above $ 40,000 remains an important level, with the 200DMA also seen at around $ 42,800.
Additionally, the 50DMA is at $ 43,700 and the two levels continue to converge towards a "death cross," a technical chart pattern traditionally viewed as a sell signal when the momentum of the underlying asset weakens.
Other major cryptocurrencies all showed similar price action and were stable after the rally earlier in the week.
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