By Scott Galbraith
The FOMC report’s indication of an increase in interest rates had a negative impact on the price of bitcoin.
Before retreating, Bitcoin touched the $18,000 area, although there are signs of a prospective rise.
The FOMC (Federal Open Market Committee) meeting, which ended on the 14th of December, produced the best possible result for Bitcoin and the crypto market.
BTC reacted negatively to the FOMC data after registering a gain that raised it to a level it hadn’t reached since the start of the month. What impact did the story have on BTC, how much of an impact did it have, and what should we expect in the following days?
A deeper look at the report
Prior to Jerome Powell’s FOMC announcement on the 13th of December, the CPI (Consumer Price Index) was released.
In the United States, inflation decreased from 0.4 percent to 0.1 percent in October. which is encouraging for the Federal Reserve’s attempts to control surging costs.
Investors felt that if inflation pressures on customers were reduced, the Federal Reserve would’ve been persuaded to halt the pace of rate increases, which is why Bitcoin (BTC) prices increased after the report’s release.
But the way the Bitcoin (BTC) market behaved after the FOMC report’s publication showed that the news had tempered investors’ excitement. On 14th December, interest rates in the United States increased by 50 Bps.
It’s also important to remember that the government fund’s target range hasn’t been this high in 15 years. The final rate of interest (terminal rate), according to Federal Reserve Board (FRB) Chair Powell Jerome, will likely be higher than 5%.
Price declines, but the upward trend continues
It was evident from the BTC chart’s daily period that the currency did not react well to the news.
The graph shows that on December 13 and 14, Bitcoin’s price reached a peak of 18,000 USD before plummeting to about 17,600 USD on the 15th of December.
The Volume Profile Visible Range study revealed that despite the price’s apparent fall, it might increase.
Bitcoin enters a reduced-volume node zone as it gets close to 17,600 USD, which can signal impending price instability.
A high-volume node symbolizes a big pricing agreement, which is typically accompanied by slower price fluctuations.