Bitcoin price inched lower on Wednesday as markets chewed on the Fed’s latest interest rate decision. At the time of writing, Bitcoin price was trading slightly lower at $28,508.98. The asset’s total market cap rose slightly for the day, while the total volume of BTC traded slipped by nearly 8%.

Fundamentals

Bitcoin price was changing hands at $28,500 on Wednesday as investors digested minutes from the Federal Open Market Committee (FOMC) two-day monetary policy meeting. According to the released minutes, the committee decided to raise the target range for the federal funds rate to 5% to 5.25%.

Economic activity in the first quarter expanded modestly, while job gains have been robust in recent months. The unemployment rate remained low in the quarter, while inflation rates remained elevated. The FOMC seeks to achieve maximum employment and inflation at the rate of 2% in the long term.

In assessing the appropriate stance of monetary policy, the Committee said that it will continue to monitor the implications of incoming information for the economic outlook. The Committee stated that it would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals.

US Treasury yields fell on Wednesday on the back of the hiked fed rates. The yield on the 2-year Treasury yield fell to 3.935%, while the 10-year Treasury yield dipped to 3.401%. The US dollar index also slipped to $101.311 at press time.

An environment of higher interest rates tends to be bearish for risk assets such as cryptocurrencies and stocks. As such, the global crypto market is likely to be volatile in the ensuing sessions as markets digest the rate hike voted for by 11 members of the committee including Fed chair Jerome Powell.

Bitcoin Price Outlook

Bitcoin price has been under intense pressure for the past few days as markets eyed the Fed’s interest rate decision. Even so, the digital asset has managed to remain above the 50-day and 100-day moving averages, as well as the 50-day and 200-day exponential moving averages. It is also hovering above the 50-day and 100-day simple moving averages.

However, its Relative Strength Index (RSI) has remained below the neutral zone, while the Moving Average Convergence Divergence (MACD) suggests a bearish trajectory.

Therefore, Bitcoin price is likely to fall further in the short term as markets take in the latest decision by the US central bank. Even so, I expect the digital asset to remain above the important support level of $28,000. On the flip side, a move past the $29,000 level will pave the way for bulls to retest $30,500, invalidating the bearish thesis.

BTC Price Chart