Fed’s Interest Rate Decision Crucial For Bitcoin Price! BTC To Face A Rejection Here
While the crypto space eagerly waits for the results of the FOMC meeting and its impact on Cryptocurrencies, it looks like Bitcoin bulls are back on their track. Bitcoin price has once again claimed its $23,000 area and is strongly moving towards its next bull run.
At the time of reporting, Bitcoin is selling at $23,097 after a surge of 1% in the last 24hrs.
This is not the first, since the start of 2023, Bitcoin has surpassed many bearish pulls. At the moment, all eyes are on the US Federal Reserve’s interest rate decision after the FOMC meeting which is scheduled for February 1, at 1900 GMT. Once the FOMC meeting concludes, 30 minutes later the Federal Reserve will reveal their decision in terms of interest rate hikes after 30 minutes of FOMC meeting.
Fed’s Decision To Shape Bitcoin’s Future Price Action
Hence, today it is expected that the crypto market will display high volatility, especially the world’s first cryptocurrency, Bitcoin. The Federal Reserve’s interest rate hike decision will be based on two factors – minimum unemployment rate and the controlled inflation rate. It all depends on these two numbers which will decide whether the Fed will have a hawkish or dovish approach. Here hawkish stance refers to a decision that is focused towards inflation control and dovish refers to the decision that leans more towards economic growth rather than inflation control.
However, what needs to be noted is that, until now, the Fed has displayed a hawkish stance where they have even increased the interest rates between 4.25% and 4.50%. Nevertheless, today the interest rates are expected to spike up by 0.25% or 25 bps. This is expected to happen 99.4% whereas the interest rate hike of 50 bps is in probability of 0.6% as claimed by CME’s FedWatch Tool.
Now, even though Bitcoin has claimed $23K level, the King currency is mostly expected to face a rejection at $23,500 and fall towards $22,300. If bulls fail to take control here, the BTC will further be pulled back at $21,232. Nonetheless, it all depends on the FOMC meeting and Fed’s decision.