Fed Minutes Release Anticipation Casts Shadow on Crypto Market

2 weeks ago 170

fed chair attending FOMC meeting

The Fed minutes will be released today at 19:00 UTC (14:00 ET) and the broader crypto market has shown minimum to no effect. Bitcoin, Ethereum, and other top altcoins haven’t moved the way expected. Most of the top coins have declined in response to the fed minutes release.

While Bitcoin (BTC) is still dwindling around the $37,000 mark, Ethereum (ETH) is facing a reddish candle. Meanwhile, Gold prices soared to a more than two-week high on Tuesday, as the US dollar fell on hopes that the Federal Reserve would stop raising interest rates.

Bitcoin Could Rally If Fed Rate Hikes

A potential upcoming Bitcoin rally is expected if the Fed hikes the interest rates again. According to the CPI data from the Bureau of Labor Statistics ( BLS), the CPI has mostly declined since September. This may indicate that the purchasing power of the Dollar is getting weak and hence people are going for alternatives.

The Fed held interest rates steady during its second consecutive meeting in November, opting to hold rates after last raising them in July.

As per the reports, the interest rates are constant in a range of 5.25% to 5.5%, but policy meeting minutes from October 31 to November 1 are expected to reveal a range of views on the probable need to raise rates even more.

Experts and analysts predict that Bitcoin will not go further down from $30K any time soon. In a recent X post, prominent crypto analyst Willy Woo shared an on-chain analysis suggesting that Bitcoin (BTC) is unlikely to dip below $30,000.

Further, Woo wrote that the price value paid up by investors has never retested the support again after Bitcoin has approached halving. That means that Bitcoin’s current support is at $30K, which will remain unaffected.

In another X post, Bitcoin maximalist Michael van de Poppe shared a Bitcoin price chart claiming that BTC has tested the resistance four times in a row. This makes the resistance weak and the price could break out anytime soon. He also predicts that a rally to $40K would be possible.

Also Read: Just In: Ukraine Uncovers First Crypto Bribe in Anti-Corruption Crusade

Broader Crypto Market

On the other hand, the top altcoins like Ethereum, XRP, and BNB have shown no such movements. Most of the top altcoins are in red today.

The worldwide cryptocurrency market cap is now $1.46 trillion, representing a 0.8% increase in the last 24 hours.
The total cryptocurrency trading volume on the previous day was $68.4 billion. Bitcoin has a 49.7% market share, whereas Ethereum has a 16.5% market share.

Also Read: Breaking: Tether’s $1 Billion Deposit in UK Firm Sparks High Court Dispute

The post Fed Minutes Release Anticipation Casts Shadow on Crypto Market appeared first on CoinGape.

Source: coingape.com
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