The high word is out: the US central bank will not change the current interest rate of 5.25 – 5.50 percent. The decision is in line with what the majority of the market anticipated and this is currently strongly illustrated in the bitcoin (BTC) price. We look at the current state of the bitcoin price and focus on the press conference of Jerome Powell, the chairman of the Federal Reserve, after the new interest rate decision.
🔔 Today: €56 gold free
Bitcoin price stable after interest rate decision
97.7 percent of the market already took into account an unchanged interest rate in advance. It is the second consecutive time that the Fed has kept interest rates stable.
The interest rate decision and the subsequent press conference in which Powell explained the decision normally guarantee intense volatility in the crypto market. So far, however, the picture is completely different. There is hardly any observable reaction in the bitcoin price.
#Bitcoin Remains in this range for now. pic.twitter.com/7kJPZT4Lwo
— Daan Crypto Trades (@DaanCrypto) November 1, 2023
Bitcoin is currently at almost the same price as at 7:00 PM, when the interest rate decision was announced. However, earlier today there was intense volatility when the bitcoin price briefly rose to a peak of almost $ 35,200.
At the time of writing, the BTC price on crypto exchange Bybit is equal to $34,560. On the Dutch crypto exchange Bitvavo, the BTC price in euros amounts to 32,707.
If bitcoin continues to experience major price fluctuations, it is important not to fall below $ 34,200. The price has held above this level in recent days. If this level is lost, the next stop is around $33,600.
If Bitcoin makes an upward move, $34,800 serves as the next resistance level. If this level is broken, the price could rise towards $36,500 – $37,000.
Fed Chairman Jerome Powell press conference
Although the Fed has once again put on the brakes on tightening its monetary policy, Powell in his press conference made short work of hopes for an interest rate cut in the near future. He indicated that the policy committee is “not thinking about interest rate cuts at all at the moment.”
The standard line that the focus is still on bringing inflation back to the 2 percent target was also discussed again. If the Fed is convinced it has successfully dampened inflation, Powell said the committee will have to discuss how long it can keep rates high before considering rate cuts.
The idea that a new rate hike would be difficult after two pauses was also refuted by Powell.
2023-11-01 20:14:04
#Bitcoin #price #reacts #suspiciously #quietly #interest #rate #decision
