Bitcoin Price Volatility Anticipated as FOMC Interest Rates Decision Looms

Discover how the latest FOMC interest rates decision and Fed press conference is anticipated to impact Bitcoin's price volatility. Get insights and analysis on the crypto market.

Posted 7 months ago in Bitcoin


A graph showing Bitcoin price volatility during FOMC interest rates decision

Bitcoin market gurus anticipate BTC price volatility to hit around the latest FOMC interest rates decision and Fed press conference.

Bitcoin (BTC) held $27,000 into Sept. 20 as the key macroeconomic date of the cryptocurrency trading week arrived. Data from Cointelegraph Markets Pro and TradingView showed the BTC price focus shifting upward compared to the week prior. Crypto markets showed conviction in the decision on interest rates by the United States Federal Reserve. The Federal Open Market Committee (FOMC) was due to announce its latest changes at 2 pm Eastern Time on the day. As Cointelegraph reported, expectations almost unanimously favored rates staying at current levels, with the odds still at 99% at the time of writing, per data from CME Group’s FedWatch Tool. “The market is pricing a 99% probability that the Fed are on hold at this meeting. And the data is conducive for that, core CPI inflation is now running at the Fed’s target on a 3-month annualized basis,” financial commentator Tedtalksmacro told X subscribers in part of his latest analysis. Despite this, the event was tipped to deliver short-term volatility. Analyzing the state of the BTC/USD order book on the largest global exchange, Binance, monitoring resource Material Indicators said that liquidity around the spot price was noticeably thin. “If one thing in particular stands out, it’s that liquidity is thinly distributed through the range,” part of its commentary stated. Material Indicators added that the subsequent speech and press conference from Fed Chair Jerome Powell should lead to further “spicy” BTC price action. An accompanying chart showed some bid-side liquidity parked at $26,650, while substantial bids were still only at $25,000. To the upside, sellers lay in wait at $27,450 — the local BTC price high from September. Continuing, others hoped for some range levels to be challenged as part of the FOMC reaction.

“Good chance we take out some stops today during the volatility,” popular trader Daan Crypto Trades suggested. Fellow trader Jelle said that he expected “choppy waters” on Bitcoin, and while scanning broader exchange activity, trader Skew predicted a lively FOMC trading environment. $BTC Binance Spot Late asia - early EU shenanigans spot bids $27K - $26.7K key area to bounce from & ask liquidity moving up the book here FOMC should be fun https://t.co/4nfUA49ipR pic.twitter.com/2gCQ4ia6dD Crypto Tony, meanwhile, flagged $26,800 as the line in the sand for Bitcoin bulls to protect. “This is what I am looking for to remain in my long position. Must hold above $26,800 support zone, or we risk creating a deviation,” he commented alongside his own chart.

Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space. This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Last updated 9/20/2023, 9:27:59 AM

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