Bitcoin
Bitcoin Price Prediction Ahead of the Fed Rate Decision
Bitcoin price has been in a consolidation phase as investors wonder whether a bear market capitulation has set in. BTC was trading at $17,000 on Saturday, a few points above the year-to-date low of $15,470.
Federal Reserve meeting next
The BTC/USD price has moved sideways in the past few weeks as investors focus on the collapse of FTX. At its peak, FTX was the second-biggest cryptocurrency in the world after Binance.
The collapse of the company has led to a significant contagion in the industry. Crypto prices have sunk while hundreds of crypto companies like Gemini and Genesis have come under significant strains.
However, on a positive side, the collapse has led to hopes that the regulators will set clear rules in the industry. I believe that a solution can be made to ensure that big exchanges have disclosure mechanisms.
A good model would be the stress tests that big banks like Goldman Sachs, Morgan Stanley, and JP Morgan go through every year. Such stress tests could be made while ensuring that cryptocurrencies maintain the privacy of their customers.
Another model is where companies provide more open-source disclosures on their holdings. Companies like Binance and OKX have already started publishing their proof of reserves.
The next key catalyst for Bitcoin price will be the upcoming interest rate decision by the Federal Reserve. Economists expect that the Fed will hike interest rates by 0.50% after hiking by 0.75% in the past four meetings.
The main concern is that the US has published strong economic numbers recently. The economy added more than 286k jobs in November while wages grew by 5%. Therefore, the Fed could point to more rate hikes in 2023. It could also point to rates staying high for a while. Historically, risky assets like BTC and ETH tend to underperform in a period of high rates.
Bitcoin price prediction
The four-hour chart shows that BTC price has been in a tight range recently. In this period, it has formed what looks like an inverted head and shoulders pattern. In price action analysis, this pattern is usually a bullish sign.
Bitcoin also remains slightly above the 25-day and 50-day moving averages. Therefore, the coin will likely have a bullish breakout towards the Fed meeting. If this happens, the next key level to watch will be $18,000.
Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.
Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.
Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
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