Investors are on the edge of their seats, waiting for the latest FOMC and FED rate decisions. Bitcoin and Ethereum prices may plummet if rates go up.
The Bitcoin price is choppy, fluctuating between $20,200 and $20,700 ahead of the US FOMC and Fed Rate decision. Similarly, Ethereum has increased between $1,570 to $1,650.
However, Ethereum has only gone up by less than 0.50%. Investors are unsure about what will happen when major news comes.
Following a rise to 1.01 trillion USD in the worldwide crypto market, major cryptocurrencies have seen gains over the last 24 hours. Over the last day, total daily volume surged 22% to hit 87 billion USD.
The overall amount of volume in DeFi was $4.01 billion, or 4.57% of the total 24-hour volume in crypto. Overall, the market is risk-off ahead of the US Federal Reserve’s monetary policy and rates decision that is scheduled to take place later today during the New York markets session.
Big day for Crypto, The US FOMC and FED Rate Decision
What does the US market think about Federal Reserve interest rates? Find out as they release their decision during the US session.
The market expects them to raise interest rates by 75 basis points, which would be significant if the hawks focused on core inflation at this meeting.
Although the economy has dropped over the last two quarters and unemployment is rising, the U.S. (once again) has returned to growth.
Furthermore, job creation is on the rise and there are more job vacancies than unemployed Americans by a ratio of four.
Inflation has increased to a record high, so the Federal Open Market Committee (FOMC) is expected to raise interest rates for the fourth time in a row. Investors will be looking for signs that the Fed plans to decrease the pace of its rate hikes in December.
There is a 49% probability that the interest rate will go up by 0.75% point and a 44% chance it’ll stay the same. Data collected on Tuesday showed strong labor markets, which could mean a lower chance of lower increases if the trend continues in December. Plus, futures markets showed little change from the day before, meaning the chances that there’ll be any changes aren’t high.
The Institute for Supply Management’s manufacturing activity index increased marginally in October, rising to 50.2 from 50.3 in September. The markets predicted a number around 50, so we can assume that the number is around what investors were expecting.
The Fed has been raising its key policy rate this year, and this has had impacts on the economy. The blue-chip S&P 500 index fell from a record high when the Fed first started raising rates.
The Fed Press Conference will be more important than its actual rate Hike
Bitcoin Price Prediction
Bitcoin is currently trading at $20,400 and the 24-hour trading volume is $38 billion. Bitcoin has lost 0.18% during the Asian trading session as the market continues to lack volatility ahead of a major event today. In the last seven days, BTC/USDT is up 1.5%.
In the last four hours, the BTC/USD pair has been trading in a vertical motion. Support is at $20,400 and resistance is at $20,700. The 50-day moving average supports Bitcoin’s bullish trend near the $20,400 level, and it crosses in a trend.
The relative strength index (RSI) and moving average convergence divergence (MACD) are both bearish, indicating that the trend is starting to reverse. This means the bears might break below the $20,300 support level, which would push the sell-off all the way to another support level at $19,950.
On the bullish side, Bitcoin may be able to break through the $20,800 resistance zone and reach the $21,000 level. If this happens, Bitcoin could go even higher, up to $21,450.
Ethereum Price Prediction
The price of Ethereum is currently $1,580, with a trading volume of $14 billion. In the last seven days, Ethereum has increased by 6%. CoinMarketCap is now ranked second, with a market capitalization of $194 billion.
The ETH/USD pair is currently in an upward channel, a good indication of levels of resistance. Ethereum’s spinning top and DOJI candles indicate indecision from its investors.
The RSI and MACD are still in the purchase zone. This means that the chances of a bullish correction above $1,550 are high. Simultaneously, breaching below this level may expose ETH to $1,480 or $1,404 today.