Bitcoin Shows Resilience Ahead of FOMC Meeting
As investors speculate on the outcome of the Federal Open Market Committee (FOMC) meeting, Bitcoin’s price demonstrates resilience. Many are betting that the committee will maintain current interest rates, signaling a potential end to the Capitulation Phase for Bitcoin and the industry.
The Current Market Scene
According to the CME Group’s FedWatch tool, there is a 98% chance that the Fed will keep interest rates unchanged, with only a 28% probability of a rate hike in November. This data is based on pricing in the fed funds futures market.
Bitcoin’s market dominance rate, which measures its share of the overall digital asset market, reached 50.2% on Monday. This is the highest level in a month and close to the 26-month high of 52% achieved in June.
Bitcoin’s market dominance remained between 39% and 49% for over two years before breaking out to 52% in June. This breakout followed BlackRock’s filing for a spot BTC exchange-traded fund, which raised hopes of significant inflows into Bitcoin.
Increased Interest and Regulatory Proposals
Number of pageviews on Bitcoinβs Wikipedia reached 7,830 on Sept 8th, the highest number of daily views in 2023. This could be attributed to the increased likelihood of a spot bitcoin ETF happening soon, leading people to search up Bitcoin and see what it’s about. pic.twitter.com/4UFuUPGnUd
β The Block Pro (@TheBlockPro__) September 12, 2023
In addition, Bitcoin could benefit from recent regulatory proposals by the New York Department of Financial Services (NYFDS). These proposals introduce stricter rules for listing cryptocurrencies on exchanges and designate BTC as a digital asset that can be listed or custody without additional regulatory hurdles.
This move may further shift interest towards Bitcoin as it solidifies its position as the “safe” cryptocurrency asset.
Insights From Market Metrics
Alongside Bitcoin’s price gains, the amount of BTC available on exchanges has decreased since September 4th. Crypto exchanges have seen a net reduction of over 40,000 BTC during this period.
Hot Take: Bitcoin’s Resilience and Potential Growth
Bitcoin’s resilience in anticipation of the FOMC meeting and its strong market dominance indicate positive sentiment among investors. The potential maintenance of current interest rates and regulatory proposals favoring Bitcoin could drive further growth in the cryptocurrency.
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