Bitcoin Price Faces Uncertainty Ahead of FOMC Meeting
The price of Bitcoin is currently hovering just above $40,000, creating uncertainty in the crypto markets despite the confidence of some investors. This unease is driven by the recent US Consumer Price Index (CPI) data and the upcoming Federal Open Market Committee (FOMC) meeting, which has caused increased volatility in BTC price this week.
Bitcoin Investors Apprehensive Before Powell Report
As the FOMC meeting approaches, Bitcoin’s price is showing signs of weakness, indicating that the market is sensitive to the insights expected from Federal Reserve Chair Jerome Powell about the economic landscape. Investors have been skeptical leading up to this event, resulting in a noticeable drop in Bitcoin’s price.
Last week, over 40,000 BTC worth around $1.6 billion were sold, with retail investors accounting for most of the selling. The selling pressure from large holders on Monday triggered a correction in Bitcoin’s price.
Bitcoin Plunges Amid Asian Sell-Off
Bitcoin’s price dropped by approximately 8% and briefly approached $40,400 as Asian traders sold large quantities of the cryptocurrency. This sell-off resulted in liquidations of over $197 million in long positions and $8.23 million in short positions. Additionally, $1.2 billion was wiped out from open interest.
In contrast, Wall Street saw gains in early trade for major indices like the S&P 500 and Dow Jones Industrial Average.
FOMC Meeting Expectations
There is a general expectation that the central bank will keep interest rates within the range of 5.25% to 5.50%. The FOMC has previously indicated its intention to maintain unchanged interest rates, but also remains flexible to adjust its stance based on economic conditions.
Bitcoin Faces Critical Juncture
With Bitcoin teetering above $40,000 before the FOMC meeting, the cryptocurrency market is at a critical juncture. Increased volatility, investor skepticism, and the impending decisions of the FOMC are contributing to the current uneasiness in the market.
Source: FXStreet
Hot Take: Bitcoin’s Price Uncertainty Intensifies Ahead of FOMC Meeting
The price of Bitcoin is currently in a precarious position as it struggles to maintain its value above $40,000. This uncertainty is driven by various factors, including market volatility, investor skepticism, and the upcoming Federal Open Market Committee (FOMC) meeting. As the meeting approaches, investors are anxiously awaiting insights from Federal Reserve Chair Jerome Powell about the economic landscape. The recent sell-off and decline in Bitcoin’s price indicate apprehension among investors. With the FOMC decision looming, the cryptocurrency market finds itself at a critical juncture where any outcome from the meeting could significantly impact Bitcoin’s future trajectory.
By
By
By
By
