Global investors are closely watching the outcome of the FOMC meeting due later today. FOMC, the Federal Open Market Committee, is the monetary policy-making body of the US Central Bank (Fed). The committee meets eight times a year to discuss changes in monetary policy, review economic and financial conditions, assess price stability, and employment output. FOMC meetings are held on Tuesdays and Wednesdays over two days, every six weeks, but may sometimes be delayed by a week or two. This period of time has contributed to a traditional habit of global investors, and everyone will wait for the FOMC meeting statement on Wednesday afternoon (at 2:00 am on Thursday in the East Eighth District). You can become a part of the Refresh Party by clicking this link: https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm
Once the meeting statement is released, financial markets such as stocks, cryptocurrencies, and commodities will usher in a wave of quotations. At that point, the market will decide on a bullish or bearish direction.
At the first FOMC meeting in 2022, Bitcoin recorded defeats in every trading session, especially in the first 4 hours of trading, which fell by 4.56%. The FOMC meeting in June recorded an increase of up to 5.11%, and the trading volume exceeded 100,000 bitcoins in just 4 hours, which is almost close to the trading volume of the whole day. However, there is a reason behind this day's surge. First, the market had already priced in the bad news, with Bitcoin plummeting from $30,000 to $20,000 in the days leading up to the meeting. Second, most investors are betting that the Fed will raise rates by 100 basis points, not 75 basis points. So what about Bitcoin's price performance after the FOMC meeting?
In the previous paragraph, it was just said that Bitcoin fell the worst after the first FOMC meeting, but it turned from falling to rising in two weeks. The sellers who sold in panic at the beginning can be said to have completely missed this small bull market. Come March, the Federal Reserve raised interest rates by 25 basis points for the first time since December 2018. The market cheered, and the price of Bitcoin also rebounded to January levels, returning to the $47,000 mark. It's just that this also marks the peak of Bitcoin in 2022. From the chart we can clearly see that the price of Bitcoin has plummeted after the last two sessions. Judging from the results of the four conferences this year, the chances of Bitcoin rising or falling after the conference are 50:50. For the author, the best situation is neither rising nor falling, and horizontal consolidation is the best solution. Sideways consolidation means that prices fluctuate within a small range over a long period of time, and the supply and demand sides are evenly matched at this time. To quote Josh Olszewicz, director of research at crypto investment fund Valkyrie Investments: "Historically, Bitcoin bottoms have been accompanied by prolonged periods of low volatility and unexciting price action." I believe that after today's FOMC meeting, the market will give a clearer direction.
S&P 500, Bitcoin, and Timeline of FOMC Statement
Author: [Coinlive] Nell
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