FOMC Minutes Release Could Propel Bitcoin to New Highs at $27,200

FOMC Minutes Release Could Propel Bitcoin to New Highs at $27,200


Learn about the impact of macroeconomic events in the United States on Bitcoin’s price and the crypto market in general, including the role of the FOMC, and get insights on potential price movements and alternative investments.

Bitcoin (BTC) price has shown equal participation betwixt the bulls and bears since early in the 30 days. This is evident given that there have been no whole lot of price movements, and Bitcoin has consolidated during a rather tight zone.

Among the factors contributing to the rather boring price action displayed by Bitcoin (BTC) price and the cryptocurrency market more  traditionally are the macroeconomic events in the United States. Macroeconomics such as inflation, Consumer Price Index (CPI), Gross Domestic Product (GDP), interest prices, debt, unemployment, and retail sales, between others, have an impact on the cryptocurrency market because they control the strength of the United States dollar (USD). It is important to note that Bitcoin (BTC) trades inversely with the USD, which means any news that renders the greenback weak advantages Bitcoin (BTC) and vice versa.

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Role Of United States Macroeconomics On Bitcoin (BTC) Price And Cryptocurrency In General

By controlling for plenty of possible biases, the Federal Reserve (Fed) determines whether each of the listed macroeconomics, between others, has a whole lot of impact on Bitcoin (BTC) or cryptocurrency returns. An boost in positive news on unemployment prices and durable goods would normally result in an associated boost in equity returns. Nonetheless, the opposite would be true for Bitcoin’s case, as increases in positive news after unemployment and durable goods announcements make a fall in Bitcoin (BTC) returns.

On the other side, an boost in the number of negative reports on the two readings would cause Bitcoin (BTC) price to boost. Reports have likewise shown that as a developing market, digital currency persists to mature via interactions with macroeconomic news.

The Federal Open Market Committee (FOMC) is the monetary policymaking body of the Federal Reserve System. Chaired by the controversial Jerome Powell, the FOMC “schedules eight meetings per year, one about every 6 weeks or so,” reports by the official website.

The Committee must likewise hold unscheduled meetings to review economic and financial developments whenever necessary. Afterward, they issue a policy statement summarizing the economic outlook and the policy decision at that meeting.

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Bitcoin (BTC) Price In Relation To United States FOMC

The Fed will release minutes of the FOMC’s May 2 – 3 policy meeting today, May 24, at 18:00 GMT, supplying valuable insights into the Fed’s monetary policy outlook. They will likewise communicate about the  capacity for further price hikes. As has been the norm, market players will monitor the minutes closely for any hints on the Fed’s stance on inflation, economic growth, and interest prices, which often affect financial markets.

During the May meeting, the FOMC raised the federal funds price by 25bps to the range of 5.00 – 5.25%, as markets anticipated. Eliminating ‘anticipates additional policy tightening’ over the past  reading intimated at a potential pause at the following June 13-14 meeting. Given the latest round of economic data, on the other hand, the odds of a price hike are higher, but only a small hike. Nevertheless, the market reaction may be limited if today’s minutes confirm a pause. Notwithstanding, comments about price cuts by year-end are not expected, although their presence could provoke a buying spree in BTC.

The focus is on the agency’s view of the present price relative to the peak and whether, along with the tightening in credit standards resulting from the banking crisis, the price is restrictive enough to attract inflation back to 2%.

Most Wall Street analysts say the price hike in May was the last of this cycle. Market participants share this sentiment and have  increased bets on several interest price cuts beginning in Q3.

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Key Insights To Look Out For In Today’s FOMC Meeting

  • The danger posed by regional banks, credit tightening, legislature perspectives on debt limit crisis, and the overall economic outlook.
  • Specialists assign a 75 percent chance of the Fed keeping prices unchanged in June but factor in about 160 bps of interest price cuts until November 2024, reports by the CME Group FedWatch tool.
  • A cohort of Fed speakers has sounded slightly more hawkish of late than anticipated, but Fed Chair Jerome Powell has signaled that tighter banking credit could limit the must increase prices further.

Expert advice is the fact that traders make use of stop loss as a management of danger intend to avoid substantial losses in case of increased market volatility.

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Bitcoin (BTC) Price Prediction With $26,500 In Sight

At the time of publication, Bitcoin (BTC) price is $26,816, a daily fall of 2%, indicating Fear, Uncertainty, and Doubt (FUD) ahead of the FOMC notice. Bitcoin (BTC) price is confronting selling pressure prevented by the 50-day Exponential Moving Average (EMA) at $27,495. This is probably a cohort of traders looking to sell as they anticipate a negative reading from the Fed.

Nevertheless, according to the general outlook, Bitcoin (BTC) price is pulling towards bullishness, although the momentum remains weak. The Parabolic SAR indicator evidences this after it flipped below BTC. Whenever this trend-following indicator tracks the price from below, it is interpreted as a positive  tendency sign.

This is why, an boost in buyer momentum could see Bitcoin (BTC) price shatter over the 50-day EMA, paving the way for further profits. In such a case, Bitcoin could tag the $28,556 resistance level next or make an extension to the April 14 high of around $30,728 in a highly positive  tendency case. Such a move would constitute a 15 percent go up from the present price.

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To facilitate this thesis, the Awesome Oscillators were soaked in green and steadily pulling toward the midline, a sign that bulls were gaining ground and could take over soon. Similarly, Bitcoin had strong support downward provided by buying pressure from the 100-day and 200-day EMA at $26,382 and $24,968, respectively.

Conversely, if panic sellers pull the trigger, Bitcoin (BTC) price could fall. The Relative Strength Index (RSI) has already intimated at the likelihood of such an outcome. The RSI has tipped downward and is about to signal a call to sell BTC. This would be confirmed once the RSI crosses below the signal line (yellow band). Traders heeding this call will send Bitcoin (BTC) price lower, potentially toward the psychological $24 000.

Bitcoin Alternative

Although while we wait for the United States economic indicator to move the dial for Bitcoin (BTC) price, consider ECOTERRA, the ticker for the Ecoterra ecological system.  This is a blockchain tech ecological system for user bonus and company action on climate change.

The project is still in the presale stage and has collected over $4.24 Million in presale sales thus far. This is out of the $4.77 Million target for stage 7. With barely a week to the following stage, investors have little time to benefit from the present $0.0085 USDT price to buy ECOTERRA before it eventually  increases to $0.01 upon listing.

The all-in-one Recycle2Earn application features recycling crypto tokens and ecology actions. Here, users enjoy a wide expanse of recycled materials, carbon offset marketplaces, and more to empower corporations while rewarding consumers.

Ecoterra Ecoterra is addressed to a diverse range of utilizers, including individuals who recycle, small enterprises, large corporations, industries, governments, and non-governmental organizations (NGOs). The project intends to provide advantages and solutions to these groups to create a more sustainable future. By addressing their needs, Ecoterra hopes to create a comprehensive approach to recycling, circular economy, and carbon offsetting, integrating it with blockchain tech for transparency, security, and ease of use.

Visit Ecoterra here

Read More:

  • Ecoterra Price Prediction – ECOTERRA Coin Potential
  • How to Buy Ecoterra Crypto Token – Recycle to Earn Presale



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