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Atlanta Federal Reserve President Raphael Bostic’s dovish comments about changing institutional dynamics have triggered a much-anticipated Bitcoin bullish momentum. BTC recovered from $93,321 on February 18 to hold steady at $98,000 on February 21, with analysts predicting the next target could be $101,000.
According to an essay in Atlanta Fed attributed to Raphael Bostic, the FED president stated that three weeks had passed between the August 2024 unemployment duration and now. He further revealed that the US 10-year Treasury yield and dollar index had fallen and that the two interest cut rates he instigated in 2025 immediately helped Bitcoin gain 5% to $97,600.
Signs of Slowing Are Accumulating
In his estimation, it had become more challenging for the jobless to find employment than several months ago, and the probability of finding work was lower now compared to the period just after the COVID-19 pandemic. Raphael Bostic also said he expected moderating inflation readings due to a slowdown in rent increase as platforms like Zillow try to align themselves with government price statistics. Bostic stated:
“I view the employment outlook as stable, but signs of slowing are accumulating […] consequently, the average stint of unemployment is about three weeks longer than it was in August.”
Ongoing BTC Accumulation by Strategy
Calling the current monetary stance of the FED restrictive, Bostic said he expected at least two interest rate cuts this year. Following his sentiments, the crypto market experienced a Bitcoin bullish moment. The US 10-year Treasury and greenback slipped downwards on the comments, which boosted the flagship cryptocurrency by 0.5% to reach the $97,600 level.
The other factor that could have pushed the unprecedented Bitcoin bullish momentum is the announcement of a $2 billion convertible note announcement by Michael Saylor’s Strategy (Formerly MicroStrategy) towards its ongoing Bitcoin accumulation. The company announced an offering of class A shares at $433.3, a 35% premium over the current marketing price, with coupon notes that will mature on March 1, 2030. When added to the company’s recent purchase of 7,633 Bitcoins, the company’s total BTC holdings now stand at 478,740 BTC ($46.4 billion), which leads to an unprecedented gain of almost $15 billion.
A Predictor of an Imminent Price Swing
On the other hand, BlackRock’s growing share in Strategy aligns with the company’s rebranding in early February, with at least 12 US states having a total share worth $330 million in Strategy stock through their treasuries or pension systems. The current Bitcoin bullish momentum reflects the narrowest range since the August 2023 price rally, where price swings oscillated between $91,000 and $102,000. Historically, this range has always been a predictor of an imminent price swing, which now keeps traders with crossed fingers hoping for the best.
A sustained move above the $100K mark would confirm the next leg of the emerging Bitcoin bullish momentum with the potential to hit higher targets. Analysts predict that BTC will reach the $120K mark in the short term if it breaks the next anticipated level. Despite the ongoing volatility, surging past the $101K mark highlights sustained retail and institutional interest.
Conclusion
Investors and traders should monitor the key support levels to capitalize on any potential pullback. Meanwhile, breaking the $101,000 resistance level will be a serious indicator of the next phase of the Bitcoin bullish momentum as the market sentiment remains optimistic for the remainder of February.
Frequently Asked Questions (FAQs)
How does inflation affect the price of Bitcoin?
The price of Bitcoin appreciates against inflation (or inflation expectation) shocks, confirming its inflation-hedging property claimed by investors.
What happens to Bitcoin if inflation increases?
The US Federal Reserve (the Fed) may raise interest rates or tighten monetary policies to slow the price rises as inflation rises. As a result, the prices of many cryptocurrencies may fall.
How do interest rates affect Bitcoin?
A more substantial interest rate may increase foreign exchange and stir up the market capitalization that causes Bitcoin prices to drop.
What happens to Bitcoin during a recession?
If a recession is caused by inflation or poor government policies, investors may look at crypto assets as a haven because they are decentralized.
Appendix: Glossary to Key Terms
Inflation: The rate of increase in prices over a given period and overall increase in prices or the cost of living in a country.
Bullish Momentum: A sign that the market is trending upward.
Recession: A significant, widespread, and prolonged downturn in economic activity.
Federal Reserve: Also known as the FED, is the central bank of the United States.
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