What This Gold Pattern Could Hint For Bitcoin If FED Hikes Rates

Bitcoin trades north of the $40,000 price mark with bullish momentum in the last 24 hours. Today, the U.S. Federal Reserve (FED) is expected to begin its monetary tightening policy. Related Reading | TA: Bitcoin Breaks $40K, Key Upside Break Suggests Trend Change The financial institution could raise interest rates hikes, and slowly pull liquidity from global markets. Bitcoin and risk-on assets, such as equities, are expected to turn bearish. So far, BTC’s price has failed to meet expectations. At the time of writing, Bitcoin trades at $40,416 with a 4% profit on the last day. Bitcoin has been behaving on its own with resilience to a potential shift in the U.S. dollar monetary policy. In step of trading as a stock, BTC’s price seems more akin to Gold’s (XAU) price action. The precious metal recently broke above the $2,000 but has backtracked on some of its gains. This downtrend could be short-lived and could predict what’s coming for Gold and Bitcoin. Two different assets are sometimes traded under the inflation hedge narrative. Senior Commodity Strategist for Bloomberg Intelligence Mike McGlone indicated that the FED last increased interest rates to 25 bps or 0.25% in 2015. Gold was coming from a multi-year downtrend that began in 2011. The precious metal saw appreciation posts the 2008 global economic crisis, but as markets began to recover, investors begin reducing their gold positions. As seen below, 2015 was the last...