Bitcoin trader keeps $40.8K BTC price target amid warning over risk asset 'pain trade'

Bitcoin trader keeps $40.8K BTC price target amid warning over risk asset 'pain trade'


Bitcoin (BTC) consolidated below $40,000 on May 5 after U.S. economic policy excitement saw a  spike to one-week highs.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewFed 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.

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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 masseincluding crypto — to deflate under the new policy, not everyone believed that such a scenario would cause investors

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