The Federal Reserve keeps the financial markets on their toes, and Bitcoin price movement inches forward as traders look forward to the Wall Street opening. On July 27, Bitcoin (BTC) attempted to recover losses as a more significant day of reckoning approached for risk assets.
According to data from Cointelegraph Markets Pro and TradingView, the price of Bitcoin dropped below $24,300 in mid-July. The pair had set a 24-hour high of BTC/USD prior to the Wall Street open on July 27. In the first part of the week, the pair fell under $21,000, adding to traders’ worries about potential US Federal Reserve headwinds.
The Federal Open Markets Committee’s (FOMC) next base rate increase is likely to be revealed on July 27, with predictions ranging from 75 and 100 basis points in size but leaning towards the higher end. Both, however, are likely unfavorable for cryptocurrencies given their concerns over both inflation and a desire to push the economy closer to depression in order to control it.
Others saw the stock market event as a confirmation of their bearish bets, with one saying that Bitcoin’s recent rise to multi-week highs was insufficient to turn the trend.
“Rejection for Bitcoin despite the fact that there was no supply at $24k isn’t a positive sign,” Whalemap observed. “With realised price bands being the only one hinting at a possible rejection, neither TA nor on-chain volume profile saw this level as resistance.” The relative absence of resistance at Bitcoin’$24,280 local top is shown in an accompanying chart of realized price by address — a breakdown of at what price various groups of BTC moved — which revealed that different groups of BTC did not resist the rise above $24,280.
At the time of writing, Bitcoin’s realized price was $21,800, according to analytics firm Glassnode
The Fed’s interest-rate hikes are expected to have a limited impact on equities, according to one expert. The potential consequences of the Federal Reserve’s actions were discussed further. According to trading firm QCP Capital, historical precedent was in fact on the side of hodlers.
“We expect the Fed Chair to attempt to soothe markets and assure them that future rate hikes would not be as severe as this one,” they wrote in their latest market update, which was sent out via Telegram channel subscribers. “Every FOMC meeting this year has seen a positive immediate market response to the rate decision. We anticipate the same for this one,” they added.
That is not to say, however, that the rate announcement would be without its market jitters. “From a volatility standpoint, every FOMC this year has been a letdown, with front-end implied [volatility] plummeting hard right after,” QCP stated.
QCP was referring to recent U.S. inflation data releases, including the Consumer Price Index (CPI) monthly prints, as shown by his or her remarks.
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