“The unexpected impact of the FOMC meeting and Powell’s speech on Bitcoin has raised concerns, prompting the question: What does the future hold for the cryptocurrency?”
Over the past couple of weeks, the Bitcoin market has been experiencing a significant upswing, with prices fluctuating between $34,100 and $35,000. This has led to various predictions from experts, with some anticipating a period of sideways movement and others foreseeing a potential price decline.
One of the factors contributing to Bitcoin’s price gains is the achievements of Grayscale, a prominent cryptocurrency investment firm. Additionally, the listing of BlackRock’s ETF on the DTCC site has also played a role in boosting Bitcoin’s value.
Another interesting trend to note is the migration of large Bitcoin holders, often referred to as whales, to major cryptocurrency exchanges like Coinbase and Binance. This shift in activity coincided with a sudden surge in Bitcoin’s price, surpassing the $35,000 mark.
However, it’s important to keep an eye on the upcoming Federal Reserve meeting on November 1st, as it could have a significant impact on Bitcoin’s price. The statements made by Federal Reserve Chair Jerome Powell will be closely watched by investors.
The primary focus of the meeting will be Powell’s remarks regarding the U.S. economic outlook. While market participants generally expect no changes to the federal target rate, there is still uncertainty surrounding a potential rate hike in the subsequent meeting on December 13, 2023.
Powell and other officials have emphasized the possibility of raising rates further if necessary, depending on inflation and unemployment data. This could potentially influence Bitcoin’s price, similar to the impact it has on stock prices and indices like the S&P 500 and Nasdaq.
The CME FedWatch Tool suggests a low anticipation of a change in the Federal target rate in the upcoming FOMC meeting. However, there is a 19.8% probability of a 0.25% rate hike. Therefore, any indications in Powell’s speech regarding future rate hike decisions could trigger a response in Bitcoin’s price.
There have also been reports suggesting a potential pause in the Bitcoin price rally, with on-chain developments indicating profit booking by short-term holders. Whether or not Bitcoin can surpass the $35,000 resistance level in the following week remains uncertain and a point of interest for market participants.
Overall, the Bitcoin market is currently experiencing upward momentum, but it is important to monitor the actions and statements of the Federal Reserve, as they could have a significant impact on the cryptocurrency’s price.
