Bitcoin price touched a high of nearly $18,400 in anticipation of today’s Federal Reserve meeting, where the US central bank was expected to raise interest rates by 50 basis points.
Volatility picked up as the Fed meeting commenced, with Bitcoin suffering a sudden pullback to $17,700. Here’s what you need to know about the last Fed meeting of the year.
No Pivot: Fed Hikes Rates 50 Basis Points
All eyes were on today’s Fed meeting and if Fed Chair Jerome Powell would follow through and soften interest rate hikes from the previously aggressive 75-basis points, to a more tolerable 50-basis points increase.
Although Powell’s speech was the most dovish in nearly twelve months of meetings, the end result was still an increase in rates, with no true pivot in sight. What this means for risk assets like crypto or the stock market, remains to be seen.
Explosive volatility struck BTC ahead of the Fed meeting | Source: BTCUSD on TradingView.com
Bitcoin Pulls Back Promptly As FOMC Meeting Begins
November CPI data came in lower than expected yesterday, prompting Bitcoin to front run today’s Fed meeting slightly.
In the hours leading up to the meeting. Bitcoin climbed to close to $18,400 at the daily high. The moment the meeting began the top brass cryptocurrency by market cap plunged by $700 in one five-minute candle.
The move could have been investors in slight profit selling the news, or potentially a shakeout ahead of a larger breakout.
Bitcoin has been entrenched in an arduous downtrend for more than a year and counting and sellers could also be taking an opportunity to exit at each sign of a rally.
Bitcoin will need to reclaim today’s high of $18,400 and push through the $20,000 range before considering a potential bottom in the crypto market.
A slightly softer Fed stance is certainly a good sign.
Featured image from iStock, charts from Tradingview.com