Bitcoin price prediction amid interest rate expected hike on January 31

The Federal Reserve will hold its first “interest rate” meeting of 2024, and the finance market expects an increase. Bitcoin’s (BTC) recent price action reflects these expectations, which historically caused BTC to drop in value.

Notably, the United States central bank target rate remains unchanged since the last hike in July 2023. In the past six months, Bitcoin, other cryptocurrencies, and the stock market positively reacted to this target interest rate stability.

Federal funds historical chart. Source: New York FED

However, this scenario could change on January 31 if the Federal Reserve follows the market’s expectations. In particular, 97.9% of interest-rate traders believe the target will increase by 25 basis points (bps), according to CME Group.

Target rate probabilities for 31 JAN 2024 FED meeting. Source: CME Group

Bitcoin price analysis amid target interest rate increase

Interestingly, Bitcoin has steadily traded in a consolidation range since December 2023 despite two brief deviations.

Stocks

Wall Street sets Microsoft stock price for the next 12 months

Cryptocurrency

Ithaca announces $2.5 million pre-seed round for novel on-chain options protocol

Cryptocurrency

Salus introduces innovative ZK application solutions for Ethereum ecosystem

Press Releases

Crypto Adoption in 2024: Key Trends and How Businesses Can Capitalize

Stocks

US Senator’s ‘most suspicious congressional stock trade’ is up 50%

The first deviation occurred to the upside on the first trading day of the approved Bitcoin spot ETFs. Meanwhile, the second deviation happened two weeks after the first, following a “sell the news event” downtrend. These two in the $41,647.20 support level and $44,371.00 resistance level.

BTC/USD daily chart. Source: TradingView

On December 29, only 82% of the market expected an increase by the Federal Reserve. Therefore, traders may have been trying to price this month’s interest rate decision, explaining the poor recent action. 

Although this highly expected decision could have already been priced, we expect a volatile day for the cryptocurrency market. Thus, cryptocurrency traders and investors must act cautiously in the hour before and after the decision. The market may see meaningful liquidations for long and short positions as participants digest the Federal Reserve decision and communication.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

Comments

Post a Comment

Popular posts from this blog

Iran completes pre-pilot phase of central bank digital currency

The Central Bank of Iran progresses with CBDC development in anticipation of the Bank of Russia’s governor Elvira Nabiullina’s visit. Iran is moving forward with its central bank digital currency (CBDC) plans, completing preliminary research for the launch of a potential digital rial. The Central Bank of Iran (CBI) has successfully completed a pre-pilot phase in the development of Iran’s CBDC, according to an official statement by CBI’s research arm, the Monetary and Banking Research Institute (MBRI). Mohammad Reza Mani Yekta, head of the CBI office for supervising payment systems, announced the news at the ninth annual conference on electronic banking and payment systems on Feb. 20. He noted that Iran’s central bank plans to increase the scope of the CBDC pilot in the country’s payment system, but doesn’t want to rush its implementation. “The pre-pilot phase ended successfully with valuable achievements. The project will soon be launched in other ecosystems and will be used by mo...
Read more

5 Cryptocurrencies Outperforming Others in the Top 100

Image
WLD’s successful rise above the $8 resistance could trigger a jump toward $10. AR might slip below $20 while selling pressure could lead PEPE down to $0.0000013. Increased buying pressure could send FET above $2 while FLR’s momentum had turned bearish. Over the last few weeks, the broader crypto market has experienced major upside with Bitcoin (BTC) hitting $64,000 at one point. However, apart from Bitcoin’s jump, there have been several cryptocurrencies that have been in the spotlight and performed exceptionally. Here are the top five best-performing coins in the top 100. Worldcoin (WLD) Worldcoin’s (WLD) price increased by 217.82% in the last 30 days. At a particular time, the price of the token crossed $9. However, in the last seven days, the upward trajectory had cooled, and at press time, Worldcoin changed hands at $7.72. Based on the 4-hour WLD/USD chart sellers might have gotten exhausted with support appearing at $7.25. However, a build-up bac...
Read more

ChatGPT 4-o predicts Solana price amid ETF forecast for 2025

Image
Solana (SOL), currently the fifth-largest cryptocurrency by market capitalization, has experienced a notable price jump in the past 24 hours.  This rise is fueled by VanEck, a well-known New York investment management firm, filing an S-1 registration statement for its “VanEck Solana Trust,” marking the first attempt to launch a spot Solana exchange-traded funds (ETFs) in the U.S. In addition, Canadian firm 3iQ Corp recently filed a preliminary prospectus to introduce the Solana Fund (QSOL) in Canada. These filings have generated substantial interest and speculation about Solana’s future price trajectory.   Picks for you 3 cryptocurrencies to turn $100 into $1,000 for end of 2024 32 mins ago Here's Bitcoin's ...
Read more