Bitcoin (BTC) consolidated below $40,000 on May 5 after United States economic policy excitement saw a spike to one-week highs.
Fed sparks little crypto reaction
Data from Cointelegraph Markets Pro and TradingView confirmed an overnight peak of $40,050 on Bitstamp following comments from the Federal Reserve and Chair Jerome Powell.
The U.S. central bank had conformed to market expectations with a 0.5% key rate hike, also suggesting that similar repeat hikes would follow.
With that, a modest market rally left Bitcoin eerily lacking volatility in what was a strong contrast to previous Fed pronouncements on topics such as inflation.
While many expected risk assets en masse — including crypto — to deflate under the new policy, not everyone believed that such a scenario would cause investors maximum discomfort.
“With so many people calling for melt ups and melt downs, maybe the pain trade is to chop sideways in risk assets…
