Oh, what a tangled web we weave when Bitcoin (BTC) lovers dare to dream of six-figure bliss! On Jan. 29, the crypto heartthrobs were caught in a pickle, as they tried to dodge the $100,000 retest bullet while awaiting the US Federal Reserve’s interest rate drama.
Bitcoin’s FOMC Tango: Uneasy Lies the Head That Wears the Crown 💃👑
As the Wall Street sirens sounded, $102,000 remained the belle of the ball, captivating the attention of CryptoMoon Markets Pro and TradingView. Our dear BTC/USD couple danced a modest waltz within a tight range, dipping dangerously close to the $100,000 mark before the sellers lost their nerve and failed to deliver the knockout punch.
Market players, ever the wallflowers, preferred to play it safe, waiting for the Fed’s next move on interest rates and financial policy. The Federal Open Market Committee (FOMC), in all its pomp and circumstance, was set to make the grand announcement at 2:30 pm Eastern Time. Chair Jerome Powell, the man of the hour, would then grace us with his prepared remarks and a press conference.
Alas, the air was thick with uncertainty, as Powell’s hawkish stance clashed with the whims of US President Donald Trump. “I’ll demand that interest rates drop immediately,” Trump declared at the World Economic Forum in Davos, Switzerland on Jan. 23. He promised to “put in a strong statement” with the Fed, confident that they would bend the knee.
“FOMC day today. Market on edge about whether or not we’ll see a rate cut or not – but Trump was very clear,” lamented Jelle, a popular crypto trader, in an X post. “Let’s see if Powell follows his own plan, or caves to pressure from the White House.”
However, the latest estimates from CME Group’s FedWatch Tool revealed that the market odds were overwhelmingly in favor of a pause in rate cuts, which began in Q3 last year. This, coupled with the possibility of fewer cuts in 2025, sent shivers down the spine of crypto and risk assets.
“We expect no Fed rate cut or hike, with the Fed Funds rate remaining at 4.25%-4.50%,” The Kobeissi Letter informed its X followers. “This is already priced-in, but markets will look for guidance from the Fed as inflation rebounds. 2 rate cuts in 2025 is the current base case.”
BTC Price: A Game of Liquidations and Limits 🎲💰
Our favorite trader, Pierre, took a closer look at the BTC price levels, identifying the top and bottom of the short-term range. He reminded us that $96,000 must hold as support, lest we fall into the abyss. A trip beyond $103,000, on the other hand, would signal a breakout and send our hearts aflutter.
“Friendly reminder that Powell’s day usually comes with several waves of volatility,” Pierre added, with a wink and a nod.
And let us not forget the data from CoinGlass, which revealed that ask liquidity was building up just below $104,000, eagerly awaiting the FOMC’s next move.
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2025-01-29 19:42