Bitcoin Holds $27K Ahead of Federal Reserve’s Decision on Interest Rates
Summary:
Bitcoin (BTC) managed to maintain a value above $27,000 on September 20, as the cryptocurrency market anticipated the United States Federal Reserve's decision on interest rates. Despite expectations of the interest rate remaining unchanged, financial analysts predicted temporary market fluctuations following the decision. Later statements and a press conference by Federal Reserve Chair, Jerome Powell, were also expected to instigate further dramatic shifts in BTC prices. Various traders signaled critical price boundaries that could potentially lead to market uncertainty.
On September 20, Bitcoin (BTC) managed to maintain a value above $27,000 as the cryptocurrency market anticipated a crucial economic update for the week. Conservative market behavior was noted leading up to the United States Federal Reserve's decision on interest rates. The Federal Open Market Committee (FOMC) was scheduled to reveal its latest adjustments at 14:00 Eastern Time.
As flagged by Cointelegraph, the broad consensus expected the interest rate to remain unchanged at present levels, with a 99% chance as per statistics from the CME Group’s FedWatch Tool, at the time of report. Tedtalksmacro, a financial analyst, suggested that data supports this prediction, with core CPI inflation now meeting the Federal Reserve's target based on a three-month annualized yardstick.
Despite the rate prediction, the upcoming announcement was expected to trigger temporary market fluctuations. A review of the BTC/USD order on the world's largest exchange, Binance, by Material Indicators, a monitoring company, noted that liquidity around the present price was distinctly low.
These experts proposed that later statements and a press conference by Federal Reserve Chair, Jerome Powell, would potentially instigate further dramatic shifts in BTC prices.
Trade charts indicated some purchasing activity was bunched at $26,650, while significant purchases waited at $25,000. On the selling side, the highest prices expected were at $27,450 - the BTC's local high for September.
Several traders were optimistic for some price boundaries to be tested as fallout from the FOMC announcement. According to trader Crypto Tony, $26,800 was the critical level for Bitcoin investors to defend: He warned that dropping below this support zone could potentially lead to an uncertain market.
This report does not recommend or advise on investments. All trading and investment decisions come with potential risks and should be made upon thorough research and deliberation.
Published At
9/20/2023 8:36:43 AM
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