FOMC Considers Rate Hike as Bitcoin and Crypto Market Face Selling Pressure
The Federal Open Market Committee (FOMC) recently held a meeting to discuss inflation numbers, which raised concerns about the risk-ON assets. As a result, Bitcoin and the broader crypto market experienced further selling pressure. Reports suggest that Fed officials are considering another rate hike before the end of the year. Despite some differing opinions, all members agree on the importance of maintaining high interest rates until inflation reaches the desired annual rate of 2%.
The decision to tighten monetary policy could have negative effects on both equities and the crypto market. More data on the Consumer Price Index (CPI) will be released on Thursday, providing further insight into the Fed’s future actions.
Bitcoin’s price dropped below $27,000, trading at $26,828 with a market cap of $523 billion. Santiment, an on-chain analytics platform, believes that the increasing number of outstanding Bitcoin futures and options may be contributing to the lackluster performance of the cryptocurrency market in October. When open interest exceeds $7 billion, it often indicates investor greed. Currently, open interest is at $6.19 billion.
Altcoin Sherpa, a crypto analyst, compares Bitcoin’s current condition to a period of significant volatility in 2019. He predicts that exciting times may come in 2024-2025 and advises investors to hold on until then.
In conclusion, all eyes are on the macro data this week for better clarity moving forward. Remember to conduct your own market research before investing in cryptocurrencies as the presented content is based on personal opinion and subject to market conditions.
By
By
By
By
By