Bitcoin Experienced a Significant Drop After the FED Meeting
Bitcoin, Ethereum, and Dogecoin experienced a sharp decline following the release of the FOMC meeting minutes that revealed an agreement to raise interest rates. Analysts predict that 2024-2025 will be the golden age for Apex cryptocurrency.
What happened: Major cryptocurrencies underwent a downturn on Wednesday after the Federal Reserve’s meeting minutes for September were published earlier in the day.
The minutes disclosed that a majority of the committee members anticipate the necessity of raising interest rates at least once in this cycle.
Though there were some dissenting voices, all members agreed that it is essential to maintain higher rates until there is solid evidence confirming a return to the 2% inflation target.
“The majority of participants judged that it would be appropriate to signal in coming months that the Committee may increase the target range for the federal funds rate at its meeting in the future, while a few judged that it could be appropriate to increase the target range in the near term,” summarized the September 19-20 policy meeting.
The inflation data expected to be high in September will be announced by the Bureau of Labor Statistics on Friday.
The global cryptocurrency market capitalization currently stands at $1.06 trillion, reflecting a 1.39% decrease over the past 24 hours.
Stocks made modest gains on Wednesday as investors eagerly awaited the release of new U.S. consumer inflation data and bond yields continued to decline. The S&P 500 index ended the day at 4,376.95, marking a 0.43% increase.
In contrast, the tech-heavy Nasdaq Composite index rose by 0.71% and closed above the 50-day moving average for the first time since September 14, reaching 13,659.68.
What do Analysts Say?
Overall, it was a positive day for the market as traders closely monitored economic indicators and the performance of key indices.
According to cryptocurrency analyst Michael Van de Poppe, Bitcoin is approaching a potential buying zone. “I’m starting to buy some things here; let’s see where we go with the CPI index tomorrow. The dollar and yields are decreasing, Nasdaq and gold are rising, and Bitcoin is lagging behind.”
According to Altcoin Sherpa, a cryptocurrency analyst, the current state of Bitcoin resembles a heavy consolidation period without a clear breakout.
“It reminds me a lot of 2019 when the price traded up and down, above and below the 200-day EMA, with strange spikes everywhere. I still think 2024-2025 is the time to have fun; try to survive until then.”
According to Santiment, an online analysis platform, the increasing number of Bitcoin futures and options contracts may be contributing to the recent subdued performance in the cryptocurrency market in October.
When Bitcoin’s open interest exceeds $7 billion, it tends to reflect investor greed. Currently, the open interest is at $6.19 billion.
Conclusion
The prices of Bitcoin and various Altcoins are currently under selling pressure as investors express concerns about the global macroeconomic situation.
However, many believe that Bitcoin will experience a rebound, especially as the Halving event in 2024 approaches.
