After finding temporary solace following last week’s slump, the crypto market now confronts increased volatility in anticipation of today’s high-impact news. Recent data from crypto price oracles reveals that Bitcoin has been trading slightly below $26k over the past four days.
With Bitcoin dominance reaching around 49 percent, the altcoin market is poised to experience further bearish sentiment in the coming days and weeks. Furthermore, investors are shifting their funds from low-cap altcoins to Bitcoin and stablecoins as a means of protecting their capital.
FOMC Statement and Interest Rate To Impact Bitcoin
Over the past three Federal Funds Interest and FOMC data releases, Bitcoin prices have reacted by declining in the subsequent days. As the Federal Reserve strives to combat inflation by implementing higher interest rates, investors have begun reducing their exposure to risky assets such as Bitcoin.
Consequently, today’s FOMC statement and interest rate release from the Fed will play a pivotal role in shaping Bitcoin’s price action in the days to come.
Fed Announcement Paused?
With the debt ceiling recently uncapped and now standing at approximately $31.4 trillion, the Fed Commission finds itself under less pressure. This situation increases the likelihood of a pause in today’s announcement. As a result, the stock market could respond with a bullish outlook if the Fed chooses to halt rate hikes.
“The Fed will struggle to sound credibly hawkish if it pauses on Wednesday, given the fact that policymakers have been data dependent,” said Gennadiy Goldberg, head of U.S. rates strategy at TD Securities in New York.