As a seasoned crypto investor with a decade of market experience under my belt, I’ve learned to navigate through the stormy seas of digital currencies with both caution and optimism. Today’s news about the Fed rate decision has me on edge, but not for the usual reasons.
On December 18th, Bitcoin (BTC) remained below the $105,000 mark, as investors waited for the upcoming U.S. Federal Reserve’s decision regarding interest rates.
Bitcoin traders see Fed rate cut confirmation
As a cryptocurrency investor, I noticed that data from platforms like CryptoMoon Markets Pro and TradingView indicated that the opening of Wall Street’s market day saw a retest of Bitcoin price support levels. This suggests a particular pattern in the crypto landscape.
2:30 PM Eastern Time is when the Federal Open Market Committee (FOMC) will release their rate decision, which will then be followed by a speech and press conference led by Fed Chair Jerome Powell.
According to CryptoMoon’s report, it appears likely that the Federal Reserve will lower its key interest rate by a quarter of a percent, as suggested by the information gathered from the FedWatch Tool provided by CME Group.
The Kobeissi Letter emphasized once more its apprehensions about a shift towards tightening monetary policy by the Federal Reserve in 2025, owing to renewed inflationary pressures, even though it forecasts reductions for this year’s end.
In their recent post on X, they mentioned that there’s an anticipated reduction of 0.25% in the interest rates today, but they also noted that chances for potential increases in 2025 are becoming more likely.
Kobeissi referenced prediction service Kalshi displaying 19% odds of the Fed hiking rates.
As inflation begins to escalate again and the job market shows signs of slowing down, the Federal Reserve faces a challenging predicament. Balancing both aspects of their two-pronged responsibility is growing more complicated, according to the statement.
“Will the Fed prioritize inflation or the labor market?”
BTC price cools as “pre-FOMC sellers” dominate
In simpler terms, before the Federal Open Market Committee (FOMC) meeting, the price of Bitcoin often experiences selling pressure as investors tend to move away from riskier assets like cryptocurrencies and adopt a more conservative approach.
“Market is very much in a dip buying mood,” popular trader Skew told X followers.
“So far throughout today we’re seeing a decrease in long interest as risk is being cut pre – FOMC. The key here though is spot flow which has been dominated by pre-fomc sellers.”
Skew nonetheless suggested that it would not “take much” to flip momentum back in bulls’ favor.
Some analysts pointed out a potential “void” in CME Group’s Bitcoin futures market around the price level of approximately $102,000. Trading firm MoGambit, in particular, identified this gap as an opportunity for the BTC/USD pair to possibly bridge it during the FOMC meeting.
Though past experiences demonstrate that not all gaps are bridged, this particular one holds promise as a possible exception,” GalaxyTrading stated in a portion of their related post.
Read More
- EUR JPY PREDICTION
- DF PREDICTION. DF cryptocurrency
- TRB PREDICTION. TRB cryptocurrency
- Doctor Strange’s Shocking Return in Marvel’s Avengers: Doomsday Revealed!
- COW PREDICTION. COW cryptocurrency
- ASTR PREDICTION. ASTR cryptocurrency
- USD MXN PREDICTION
- POL PREDICTION. POL cryptocurrency
- XDC PREDICTION. XDC cryptocurrency
- YFI PREDICTION. YFI cryptocurrency
2024-12-18 21:50